031222 National Feeder Cattle Weekly Summary

Compared to the previous week, receipts returned to normal and feeder cattle and calves over 550 lbs sold steady to 2.00 higher than two week’s ago.

For months, people have been talking and market reviews (including this one) have been stressing the discount that lightweight calves have bringing compared to yearlings and heavy calves that are suitable for the feedlot. Not anymore! Cattle feeders and backgrounders have found it difficult to buy the heavier feeder cattle at price levels that will hedge.

All of a sudden, they have jumped on the “fly-weight” calves that have numerous marketing options and can be cheapened-up over time so that they will hedge. Steer and heifer calves weighing under 550 lbs sold 3.00-7.00 higher with many instances up to 10.00 higher than before Thanksgiving. The increased demand for these lightweights was very consistent from the Southeast all the way across and up to Montana. Colorado and Wyoming auctions routinely sold 300-400 lb steers around 150.00 with Torrington Livestock Market posting 162.00-166.00.

More than 26,000 head of cattle were sold this week between just two southern Missouri auctions, Joplin Regional and Ozarks Regional Stockyards. Two of these sales were Wean-Vac specials that continue to increase in popularity with healthy premiums for healthy calves. Handsome prices continue to bring cattle out of the woodwork. Needless to say, many backgrounders are deciding to take their profit early instead of gambling on things staying this good.

This week’s reported auction volume included only 34% over 600 lbs and 42% heifers. Auction volume for the week: 322,800 this week; 103,100 the previous week; 318,700 the same week last year.

Source: AgWeb.com

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