Fat Cattle Trade Slides $2,
But No One Knows Just Why

"Higher meat and lower numbers — how do you figure it?" was one trade observer’s response to Wednesday’s fed cattle action in the Texas Panhandle. Despite a minimal 56,000 head showlist and improving wholesale beef prices, the market rolled over and gave up $2 without a whimper.

After hanging fire Monday and Tuesday, trading began at $70 around noon and was expected to total 20,000-25,000 head for the day, making a 40,000-45,000 week-to-date figure. That, as much as anything, may explain the capitulation; feedlots with something to sell saw rich black ink on the closeout at $70 and decided to take it before buyers could call timeout.

Much the same happenened in Kansas, where USDA counted 22,500 head for the week through midafternoon Wednesday, mostly at $70. Nebraska’s numbers came to 55,000, terms by Wednesday mostly $70-71 live and $115-116 dressed.

Midwest direct areas were $1-2 lower at $70-71 live, a few $69, and $113-114 dressed. Terminals sold in a wide range of $67.75 on lesser kinds to $74 and $75 on high selects and choice, a few straight choice to $76.

Slow to moderate trade in the Southwest saw beef breed steers and heifers bring mostly $68.50-69 and Holsteins $65. The Northwest was slow under light to moderate demand at generally $114-115, a few down to $113.

Feeder cattle and calf prices tracked all over the board this week.

La Junta, Colorado, counted 8900 head over the scales and reported steer calves under 600 pounds steady to $1 higher, 600-650 pound weights to $3 higher and yearling steers steady; heifers under 700 pounds were $1-3 higher, the full advance on 400-700 pound brackets, a few heavier heifers steady to $1 higher.

San Antonio called about 2000 head steady to $3 lower on both steers and heifers. Near the Gulf Coast, Alice was $3-4 higher on steers and mostly steady to $2 lower on heifers, receipts about 1800 head.

Abilene offered 2400 head and was generally steady on most weights but $3-5 higher on the lightest calves. Amarillo sold 2010 head at $1-2 higher rates on offerings over 700 pounds but firm to $2 higher on lighter steers and $1-2 lower on lighter heifers.

With 15,400 head on offer, Oklahoma City quoted feeder weight steers and heifers steady, calves steady to $2 lower. Best 300-400 pound steer calves earned $73-80; 400-500 pounds $66-74; 500-600 pounds $64.75-72; 600-700 pounds $61-66; and 700-730 pounds $64-65; 600-700 pound yearlings were $66-71; 700-800 pounds $67-70.50; 800-900 pounds $65-69.