Prices vary over the course of time because of changes in beef demands, cattle numbers, grain prices, and forage conditions. Because these changes may be repeated year after year, seasonal patterns of price movement may be evident. Producers can use these patterns to make purchasing and selling decisions. As feeder cattle increase in weight, the price paid per hundredweight generally declines. This is driven by changes in costs of feeding, grazing conditions, and the outlook for fed-cattle prices at different times of the year.
Buyers pay different prices for heifers and steers of the same weight.
The discount for heifers usually declines as the weight increases. Discounts are related to the lower rates of gain, lower feed conversion rates, and the reproductive problems associated with heifers. Recognizing and analyzing these signals correctly can help a producer determine which weight may be more profitable to buy or, in the case of a cow-calf producer, whether or not to hold the calves to a heavier weight. These prices were obtained by trained enumerators from 15 to 20 auction markets each week. This study uses a monthly average of these weekly prices.