Fed Cattle Decline Another $2
In Holiday-Constrained Trade

Plains fed cattle trade gave up another $2 this week to trade at $68, pressured by a variety of factors.

Last Friday’s cattle on feed report, detailed elsewhere in this issue, was bearish; it showed numbers up one percent in the seven major states, October placements up 11 percent, and marketings off seven percent. Analysts had anticipated similar results, however, and the news was supposedly already factored into the market, so how much of the week’s price decline can be laid off to the report is questionable.

More significant, observers say, was the week’s short kill schedule and the calendar change coming up this weekend. Starting next week, goes the reasoning, packers can begin pulling December contracts, and though relatively small in numbers, those supplies could be sufficient to keep some buyers out of the market for a couple of weeks.

That is said to have prompted many feeders to sell this week, and the small sales window gave packers the upper hand.

The Texas Cattle Feeders Association counted 55,000 head moving in their trade area by presstime Tuesday, more than the 53,609 head showlist.

Kansas sold some 43,200 head, 16,000-plus of them captives, and $68 the going rate. Nebraska’s trade came to only 16,600, at $68-69 live and mostly $110-112 dressed.

Midwest prices ranged widely from $67 to $71 depending on grade, direct trade areas generally $68 live and $110.50-112 dressed.

The Southwest was quiet early in the week, and information from the Northwest was unavailable.

Feeder cattle trade was sketchy with holiday schedules closing many outlets and weather curtailing numbers at others, but the prevailing trend was downward. Pressure came from the weaker fed cattle market, a pause in declining grain prices and rapidly filling feedlot pens and wheat pastures.

Beeville, Texas was an exception to the trend with $2-3 higher prices Monday on 1761 head. San Antonio, with a scant 614 head on offer, was steady to $3 lower, however. Billings, Montana, called 2280 head steady to mostly $1 lower.

San Angelo’s special feeder sale Monday attracted 3327 head despite a veritable blizzard in the area Sunday; prices were termed generally steady except for 500-600 pound heifers, which were weak to $1 lower. Details can be found elsewhere in this issue.

Oklahoma City offered 4800 head and called feeder weights $2-3 lower, calves steady to $3 lower. Best 300-400 pound steer calves made $66-73.50; 400-500 pounds $63.75-71; 500-600 pounds $63.50-70; 600-675 pounds $60-66; 700-750 pounds $62-65.75; few 675-700 pound yearlings $67-68; 700-800 pounds $64.25-68; 800-850 pounds $65-68.50.