Seasonality in demand is related to consumers' seasonal product preferences for meat and buyers' interest in feeder livestock. The interaction of these changing demand and supply conditions causes a distinct seasonal price pattern to livestock prices. Seasonal price patterns were developed using historical price data from the West Fargo Stockyards published by the Livestock Division, USDA, Agricultural Marketing Service. Increases in frame size and weaning and market weights have occurred in the livestock industry during the past twenty years. The seasonal indices use average monthly prices computed as a centered 12-month moving average.
Monthly averages reduce sharp variations in daily and weekly prices.
The average price for each month expressed as a percentage of the moving averages for the same month provides the index. Interpret monthly indices as the percentage that the monthly price is expected to be of the average yearly price. The 1985-1994 indices for market classes of livestock discussed are shown in Table 1. Indices of Seasonal Prices for Selected Classes of Livestock, ND, 1985-1994. Market Steers, 1.010 1.019 1.019 1.037 1.026 .996 1100-1300 lbs.