Texas Fed Cattle Closed Higher
Last Week In Wednesday Trading

AMARILLO —(USDA)— Slaughter steers and heifers closed $1-2 higher last week in Texas feedlot trading. The trade was at a standstill until around noon Wednesday, when packers made their move. Bids were increased to $66, $66.50, then to $67, where much of the trade took place.

Boxed beef cutouts and futures were supportive and good packer margins continue to encourage fairly heavy kills. Sales were confirmed on 118,300 head, including 40,000 formulated cattle.

The weighted average price of all beef type steers was $66.80. The average liveweight of most cattle slaughtered at area packing plants the previous week was 1183 pounds compared with 1193 a week earlier and 1192 a year ago. Heifer percentages were 43, 37 and 44, respectively.

Slaughter steers and heifers in most trading areas were $1-2 higher with most late trade at the full advance. Packer demand was good as some increase in boxed beef prices and the best hide and offal credits of the year helped their confidence to shore up depleted inventories.

Feedlots are current with no backlog of ready cattle. As long as slaughter levels continue to top 700,000 head per week, the feedlot situation should remain current.

Current prices are tops for the year during a period of heavy supply. This is a definite reversal of expectations. However, beef demand is so strong that fundamentals are out the window. Some analysts believe the Y2K phenomenon is taking hold, causing consumers to buy freezers and load up on meat items with beef being the meat of preference.

Boxed beef cutout prices were up $1.19 to $110. Hide and offal was $7.68 per cwt. of live weight or $92 on a typical 1200 pound steer.

Some Texas trading:

Slaughter steers: select and choice 2-3 1150-1300 lbs. $66-67, pen $67.50, mostly $67, weighted average $66.86; select and few choice 2-3 1150-1300 lbs. $65-66, weighted average $65.56; few select and choice 1-3 1250-1300 lb. Holsteins $60.50.

Slaughter heifers: select and choice 2-3 1050-1200 lbs. $66-67, mostly $67, weighted average $66.86; select and few choice 2-3 1050-1200 lbs. $65-66, weighted average $65.62.