Texas Fed Cattle Prices Lower,
Movement Liberal, Lots Current

AMARILLO —(USDA)— Slaughter steers and heifers closed $1 lower last week in Texas Panhandle feedlot trading. This week's total movement included nearly 70,000 head sold last Friday, most of which were last week's cattle.

The week's moderate movement will leave feedyards fairly current with some carryover. Boxed beef cutouts and CME futures were not supportive, but good packer margins continue to encourage fairly heavy kills.

Confirmed sales totaled 178,200 head and included 46,700 formulated cattle and 2300 contracts. The weighted average price of all beef type steers was $65.56. The average liveweight of most cattle slaughtered at area packing plants the previous week was 1193 pounds compared with 1191 a week earlier and 1195 a week ago. Heifer percentages were 37, 42 and 44, respectively.

Slaughter cattle prices were $1 lower in most marketing areas last week. Demand was adequate for the available numbers, but packers continue to keep additional live inventories at minimum levels.

If the market were status quo with the past several years, given the large kills, heavy weights, abundant pork and chicken supplies, and short-term disruption in East Coast meat movement, the current live price would be considered very good. Add to this large August placements at 10 percent above the five year average going into feedlots with more of the same set up for this month, and there is little in the fundamentals thatshould continue to sustain the mid-$60 slaughter market.

The list of positives is short but powerful: demand. Beef demand has sustained itself going on its fourth quarter. Analysts speak little of this as after 15-20 years of declining beef demand they are almost afraid to belabor the subject for fear that it may fade into the sunset. But as beef continues to move at this level in the face of sustained 700,000-plus weekly slaughters it is becoming increasingly evident that beef has bottomed out its demand slide and has turned the corner. Boxed beef prices fell 52 cents from the previous Friday to average $108.85.

Some Texas Trading:

Slaughter steers: select and choice 2-3 1150-1300 lbs. $65-66, few early $66.50, weighted average $65.59; select and few choice 2-3 1150-1300 lbs. $64-65.50, weighted average $64.74; few select and choice 1-3 1250-1300 lb. Holsteins $59-60.

Slaughter heifers: select and choice 2-3 1050-1200 lbs. $65-66, few early $66.50, weighted average $65.59; select and few choice 2-3 1050-1200 lbs. $64-65.75, weighted average $64.77; few select and choice 2-4 1100-1250 lbs. including heiferettes $62-63.