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May 4, 2001

MARKETING

By Bryce Myrick
Director, TFB Agricultural Marketing Education

Which is the best way to sell fat cattle, cash or on the grid? The answer may lie in what quality of cattle you produce. In the Texas Panhandle, more and more cattlemen are selling their cattle on the grid.

When cattle are coming out of the feed yards, a cattleman has the option to sell for cash to a packer buyer or he can sell his cattle on the grid. To sell on the grid, cattle are killed and hung on the rail. At that point, the carcass is graded by a USDA inspector. Carcasses are graded prime, choice, select, or standard, and assigned a yield Grade #1, #2, #3, #4, or #5. Yield is the amount of beef versus fat on the carcass. A #1 yield is a lean carcass, while a #5 yield is a very fat carcass. Good sustainable grades for Texas producers would be a choice yield grade #2. This might generate $50 a head above cash prices.

In the future, buyers are going to demand better quality cattle from the country. If I can help you with any questions, call me at 254-715-5055.

December - Cotton

Fundamentals: Exports good, but domestic use weak.
Technical Analysis: Trend—Weak; Resistance—52.60; Support—48.80

July - K C Wheat

Fundamentals: Low carryover supply - exports key to price.
Technical Analysis: Trend—Short-term Up; Resistance—3.39; Support—3.13

September - Soybeans

Fundamentals: Big South America crop—Big U.S. planting intentions
Technical Analysis: Trend—Down; Resistance—4.40; Support—None

October - Live Cattle

Fundamentals: Weakening Demand—Foot and Mouth concerns.
Technical Analysis: Trend—Short-term Down; Resistance—74.40; Support—73.30