031147 National Feeder Cattle Weekly Summary

Compared to the previous week, calf prices were uneven and yearling feeders were steady to 2.00 higher on an extremely limited test. Receipts were much lighter than a year ago as many producers could not resist prices and sold a bit earlier than usual. Calf demand remains good, but seems significantly better for lightweights weighing under 500 lbs which give the buyers more options and will hedge past the April CME feeder contracts that have been trading at a discount to March and May.

This lightweight demand was evident in the Southeastern markets, where the bulk of the reduced supplies weighed from 200-400 lbs and traded steady to 4.00 higher.

In the Plains and the Mountain States, where most of the calves weigh over 500 lbs, prices were unevenly steady to 2.00 lower. The quality of the calf offerings in these areas was also reportedly plainer as the fall runs have peaked and many of the most reputation herds have already sold.

Demand has dramatically increased for female replacements as ranches complete their preg-testing and cull/keep sorting for the year. Many cow-calf producers could not resist the handsome calf market and sold most or all of their heifers. Instead, they can increase their production quicker by obtaining bred heifers or young cows from someone else’s herd. Most producers take pride in building their own herds, but business is business.

Auctions in western ranch country, including sales in La Junta, Colorado quoted bred heifers over 1000.00 per head and young cows up to 1125.00. Buyers don’t like having to winter new replacement purchases, but most cattlemen agree that the replacement market will be significantly higher in the spring.

This week’s reported auction volume included only 30% over 600 lbs and 43% heifers. Auction volume for the week: 327,800 this week; 363,500 the previous week; 360,700 the same week last year.

Source: AgWeb.com - Based on information issued by USDA

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