Slaughter Cattle Prices Off
Most Places Again Last Week

AMARILLO —(USDA)— Slaughter steers and heifers sold steady to mostly $1 lower in Texas Panhandle and Western Oklahoma feedlot trading last week. Movement of fed cattle was noted each day with the bulk being traded on Wednesday.

Most buyers were never very aggressive for numbers and kept bids lower. Also, several strings of cattle sold with longer than normal delivery terms.

The average liveweights of cattle sold continue to run 20-30 pounds heavier than a year ago. Several feedlots held available supply in firm hands, unwilling to trade at current bids, and carried all or partial showlists over.

Sales were confirmed on 83,400 head, including 33,700 formulated cattle. The weighted average price of all beef type steers was $59.17. The average liveweight of most cattle slaughtered at area packing plants the previous week was 1185 pounds compared to 1184 a week earlier and 1151 the same week a year ago. Heifer percentages were 42, 44 and 45, respectively.

Fed cattle prices around the country showed some stability at the $60 level and held back a downward price swing that began almost two months ago. Midwest direct prices held mostly steady to instances 50 cents lower in Illinois. Terminal markets averaged steady, instances 50 cents to $1 higher. Western parts of the nation showed further declines at mostly $2 lower on a dressed basis.

The estimated composite of boxed beef cutout values on choice 2-3 550-700 pound carcasses was up 86 cents at $101.34, 700-850 pounds up 52 cents at $100.02. The price spread between select and choice cutout values was $9.40, almost $3 above the four year average.

At midweek packers were aggressive and purchased a large volume of cattle at $60. It was the first time in two months that packers actually raised their bid during the week.

Lackluster domestic beef demand coupled with competitive pork and poultry and poor exports are expected to limit improvement in the current market outlook. The recent cattle on feed report was bearish and CME contract lows were registered on all cattle futures for the second consecutive week. Large feedlots indicate a 10 percent decline in market numbers available for August.

Some Texas trading:

Slaughter steers: select and choice 2-3 1100-1250 lbs. $59-60, weighted average price $59.24; select and few choice 2-3 1100-1350 lbs. $57-58, weighted average $57.79.

Slaughter heifers: select and choice 2-3 1000-1150 lbs. $59-60, weighted average $59.29; select and few choice 2-3 1050-1150 lbs. $57-58, weighted average $57.60.