Thomas Elwood: Early livestock commentary
By Thomas Elwood
Linn Group Inc. Livestock Analyst
Packers are bidding $92.00-$93.00 in Kansas, with bids still hard to come by in Texas this morning.
Even so, sources in Texas think trade is possible today. Packer bids are up top $148 in the north and the
USDA is reporting cattle trading that way in Iowa. We usually don't report on Iowa trade, but in this
case the fact that trade is coming $2 lower than last week has potential implications for the rest of the
market. If futures maintain their early week break, we could see feedlots in Kansas begin to leak cattle
out at lower money today.
The choice cutout was up $0.33 at $155.23 last night, with the select down $0.05 at $145.73. Spot
volume was extremely light. Buyers have ramped up forward purchases in the past few weeks and it is
now resulting in lighter spot sales. There wasn't much in the way of consistent trends in the various
primals. Mostly noted again was somewhat slower grinding demand.
Cash hog market calls are mostly steady again today. A few packers still need hogs for the rest of the
week and have to pay at least steady despite lighter kill schedules. Some firmness is still possible in
both the East and the West.
The pork cutout gained $0.12 last night. Loins were called unevenly steady, with bone-in a little lower