Few Direct Fed Cattle Mixed,
Big Gap Between Bids, Offers

OKLAHOMA CITY —(USDA)— Direct trading was moderate in the North Plains last week with moderate to good demand through 10 a.m. Friday. Dressed sales were $2 lower, live basis steady.

The Southern Plains had yet to trade appreciable numbers with token trades steady to $1 lower. Bids and asking prices were $4 apart as packers clung to strong margins and sellers were fortified by narrow Choice/Select spreads and a slight premiums added to lighter carcasses.

With lighter placements the past three months and empty pen space growing, sellers feel the time is near to narrow packer margins. Some evidence was noted that Japan may be making headway in consumer confidence in beef.

Boxed beef cutout values Friday morning averaged $108.94, down $1.51 from the previous Friday.

Sales of slaughter cattle on a national basis for negotiated cash trades were light with only 50,840 head sold through 10 a.m. Friday. The previous week’s full count was 169,636 head.

In High Plains direct markets, token sales of 35-65 percent Choice steers and heifers weighing 900-1400 pounds brought $63-64.

Midwest direct markets had 38-80 percent Choice steers of 900-1400 pounds $63-63.50, weighted average $63.10. Dressed 550-950 pound carcasses were $98-100, weighted average $99.

Slaughter cows and bulls were $3-5 lower. Boneless beef moved sharply lower as the holiday demand subsided. A severe drouth in the West is creating ample supplies for packers. Cutter cow carcass cutout value closed Wednesday at $86.44, down $6.11 from the previous Friday.

On Tuesday in Colorado and Oklahoma, breaker cows 1000-1600 pounds brought $35.50-38, boners 900-1500 pounds $35.50-38, lean 850-1300 pounds $32-35.50 in Colorado and 35.25-37.50 in Oklahoma. Bulls 1500-2200 pounds were $46.50-49.50 in Colorado and $50-53.50 in Oklahoma.