Direct Fed Cattle Prices Soft,
Packer Margins Continue Strong

OKLAHOMA CITY —(USDA)— Demand was good for slaughter cattle in direct markets last week with active trade on Thursday. Slaughter steers and heifers sold $1 lower while dressed prices were steady. Packer margins are strong, resulting in another large kill week despite continued heavy weights.

Marketings from feedlots will be liberal for July, and this combined with an anticipated light July placements will most likely drop total numbers on feed even farther in the upcoming cattle on feed report. Export movement to Japan is coming around after months of stagnated movement following the mad cow scare in Japan.

The feedlot situation is finally starting to look up after a record number of months of losses in the feedlot sector.

Boxed beef cutout values Friday morning averaged $104.88, down $.83 from last Friday.

Sales of slaughter cattle on a national basis for negotiated cash trades totaled 131,700 head through 10 a.m. Friday. The previous week’s full count was 170,300 head.

On High Plains direct markets, 35-65 percent choice steers and heifers weighing 900-1400 pounds brought $60-63, weighted average $61.95.

Midwest direct markets had 35-80 percent choice steers and heifers of 900-1400 pounds $62, dressed 550-950 pounds $97-100, weighted average $99.

Slaughter cows sold steady to $2 lower, bulls steady to $1 lower. Cutter cow carcass cutout value closed Thursday at $80.78, down $2.30 from the previous Friday.

Breaker cows 1000-1600 pounds on Tuesday in Oklahoma were $35.25-35.50, in Colorado and Alabama $34.50-38.50, Boners 900-1500 pounds in the three states were $35-39, lean 850-1300 pounds $32-36.50; bulls 1500-2200 pounds were $47.50-51 in Colorado and Oklahoma and $50-56 in Alabama.