Written Commentary
Compared to last week. Feeder steers soled steady to 3.00 higher. Feeder heifers mostly 1.00-6.00 higher. Steer calves traded unevenly steady on very limited comparable receipts. Demand good to very good.
Choice boxed beef dropped Tuesday with Chucks dragging cutout lower. Choice Rounds were up but are trading under Select Rounds. Choice briskets are less than Select briskets. Grind a cut up for hamburger, a seller doesn’t need Choice. There is enough cheap fat on a carcass to blend so there is no reason to pay up for Choice. Beef market is being moved by ground beef and trimmings markets and that is not a positive indicator.
Moderate movement of pork for Tuesday. Loins up 2.30 and hams jumped 11.05 early in the day and settled up 8.10. Every primal cut higher. Ham strength is likely due to continued buying from Mexico.
Yesterday hog weights dropped to 277.47 live and 208.49 carcass weight. Of course a drop of 4.3 pounds on live weight for one day may be due to a few reasons such as the extreme temperatures over the past week or needing to move extra loads of light hogs because more hogs need to come to the grower buildings, but it does need to be watched. It could mean packers are pulling hogs up. Packers are making big money and want to keep profits going.
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