Weight gain and a potential increase in price over the feeding period are used to generate positive returns to the cattleman's time and efforts and compensate for the cost of feed. There are three factors you need to consider as you evaluate buying cull cows. The seasonality of cow prices, cull cow slaughter grade price differentials, and the cost of feed. Let's discuss these factors and analyze the decision to purchase and stocker cull cows. Cull cow prices generally follow a consistent seasonal pattern.
Prices are the lowest in the fall and peak in late winter and early spring.
Summer prices are near the average for the year. Figure 1 contains a graph of cull cow prices for the period from January 1995 to July 1997. Cull cow prices rise as the supply of cull cows decline. The lowest prices occur as the supply of cull cows increase near fall weaning time. The highest prices are during the winter months when slaughter cow availability is at lowest point.