Texas Fed Steers, Heifers Open
New Year Trade On Higher Note

AMARILLO —(USDA)— Slaughter steers and heifers sold $1 higher in Texas Panhandle and Western Oklahoma feedlot trading last week. Trade was slow all week except for Thursday afternoon, when most of the activity took place.

Packers bid lower until Thursday, when they became much more aggressive to meet their immediate kill needs. The higher cash prices were supported by strong CME futures and boxed beef cutout values, plus a marked upsurge in hog prices.

Most feedyards managed to move the bulk of their showlists, but some carryover was noted. Sales were confirmed on 93,800 head including 28,300 formulated cattle and 1400 head or 41 loads of CME deliveries.

The weighted average price of all beef type steers was $60.97. The average liveweight of most cattle slaughtered at area packing plants the previous week was 1183 pounds compared with 1182 a week earlier and 1155 a year ago. Heifer percentages were 40, 39 and 42, respectively.

Confirmed sales in five major direct trade areas totaled 353,600 head compared to 425,000 a year ago.

Most areas sold slaughter cattle $1 higher. Demand turned good once players found common ground Thursday as the week's strong futures trade finally stabilized. Two weeks of good movement from feedlots has brought supplies to a manageable level. However, supplies are expected to be fully adequate the first quarter of 1999 and should keep the lid on prices for the short haul.

Boxed beef cutout values rose $2.31 with good movement. Analysts say winter's chill will temper cattle weight gains while fueling demand for red meats. Add to this the effort made by USDA, which seems successful at the moment, to increase demand for pork through lower retail prices, and they are pronouncing a bonafide rally in cattle and hog markets.

Some Texas trading:

Slaughter steers: select and choice 2-3 1100-1250 lbs. $60-61.50, mostly $61, weighted average price $60.99; select and few choice 2-3 1100-1300 lbs. $60-60.50, weighted average $60.20.

Slaughter heifers: select and choice 2-3 1000-1150 lbs. $60-61.50, mostly $61, weighted average $60.99; select and few choice 2-3 1000-1150 lbs. $60-60.50, weighted average $60.18.