Basically, most fat cattle the week of Jan. 12 brought $70 per cwt.
Monday, Jan. 17, Choice cattle were quoted at $116.45 dressed per cwt. and Select at $107.15 dressed per cwt. With a yield of 63.5% and figuring 50% were Choice and 50% were Select, that figures that fats should be worth $70.99 per cwt. live.
But that does not include the offal, at $7.53 per cwt. live weight. If the average animal weights 1,200 pounds, the offal is worth $90.36 per head. Even if the packer is justified to have $40 per head, that gives him an extra $50.36 per head. And that is if we can trade fats at $71 per cwt. the week of Jan. 17.
On fat cattle, that leaves the packer with an extra $28 million. And part of that should have been mine. We can get more of what we have coming, but we have to be tougher traders to get it.
I went through Alva, OK, and then on to Wichita, KS, this past week. I saw some cattle out on wheat, but not an extra large number. Of all the cattle I could see close to the road, I only saw one bunch of bigger feeder cattle. Most of the cattle on wheat looked like they would weigh from 400 to 550 pounds.
At the auctions this past week, there were a lot of 500- to 600-pound cattle and some feeders.
Most of the buyers I talked to thought there would be some feeders for another week or so, and then the numbers would slow down.
However, with the lack of winter, cattle are gaining very well.
And if the market stays aggressive as it has been, I look for feeders to keep coming back to town for fear the market might not stay that good.