Texas Fed Cattle Prices Trend
Higher; Most Movement Thursday

AMARILLO —(USDA)— Slaughter steers and heifers sold 50 cents to $1 higher in Texas Panhandle and Western Oklahoma feedlot trading last week.

Prices advanced in reaction to and supported by higher boxed beef cutout values and strength in CME futures. Trade was slow in developing, with most activity not occurring until Thursday morning when buyers raised their bids. That activity was only short-lived, however, as buyers accumulated immediate needs and trade turned slow in the afternoon. Several feedlots carried showlists or parts of showlists over as clearance was not complete.

Average liveweights continue to move up and are around 30-40 pounds heavier than a year ago. Sales were confirmed on 83,800 head including 25,800 formulated, 800 contracted and 14 loads or 500 head of CME cattle. The weighted average price of all beef type steers was $64.72. The average liveweight of most cattle slaughtered at area packing plants the previous week was 1170 pounds compared to 1154 a week earlier and 1128 a year ago. Heifer percentages were 40, 43 and 40, respectively.

Midwest terminal markets opened the week 50 cents to $1 higher. Midwest direct trade was steady to $1 higher and western parts of the nation steady to $1 higher, mostly on a dressed basis.

The estimated composite of boxed beef cutout values for choice 2-3 550-700 pound carcasses was up $1.59 at $100.47, 700-850 pounds up $1.24 at $99.55. Beef demand was a bit disappointing with some packers cutting kills early in the week. Packer margins were poor.

A total of 449 loads of June futures cattle were tendered for delivery in the carcass. The June 1998 contract had been modified, and some major feedlots found the delivery process their best market option. This marked the first time for heavy deliveries since carcass delivery was implemented.

Some Texas trading:

Slaughter steers: select and choice 2-3 1100-1250 lbs. $63.50-65, late $64.50-65, weighted average price $64.74; select and few choice 2-3 1150-1200 lbs. $63.50-64, weighted average $63.91; carcass basis, select and choice 2-3 1100-1250 lbs. $100-103.

Slaughter heifers: select and choice 2-3 1000-1150 lbs. $63.50-65, late $64.50-65, weighted average price $64.69; select and few choice 2-3 1050-1150 lbs. $63-64, weighted average $63.89; carcass basis, select and choice 2-3 1100-1150 lbs. $100-103.