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October 19, 2001

MARKETING

By Bryce Myrick
Director, TFB Agricultural Marketing Education

Is feeding cattle in the feedlot a viable alternative for Texas producers?

As cattle prices cycle, there are times when producers should consider placing their cattle in the feedlot. The vast majority of Texas producers have never placed cattle in the yard. There are many reasons producers have not used this viable option:

1) Yards want too many cattle in a pen for most producers.

2) Producers are not comfortable feeding cattle.

3) They do not know the cost involved and how yards work.

4) Producers feel they are giving up control of their cattle.

5) Many producers do not want to wait four-plus months to get paid for their cattle.

Considerations of sending cattle to a feedlot are that:

1) Producers raising better quality cattle do not get paid for the quality they raise until they hang on the rail.

2) When selling at an auction, the cattle shrink, are bought at a discount, and producers pay commissions and fees.

3) When selling to order buyers, producers lose shrink and slide.

If we can help you learn more about feeding cattle, please call Bryce Myrick at 254-715-5055 or 254-751-2242.

DECEMBER - CORN

Fundamentals: 9 plus billion bushel crop—demand excellent.
Technical Analysis: Trend—Down; Resistance—2.20; Support—2.02

DECEMBER - KC WHEAT

Fundamentals: Smaller 2001 crop—demand OK
Technical Analysis: Trend—Down; Resistance—2.95; Support—None

APRIL - LIVE CATTLE

Fundamentals: Lower demand since Sept. 11 attacks.
Technical Analysis: Trend—Down; Resistance—76.90; Support—71.80

NOVEMBER - ROUGH RICE

Fundamentals: Price down from 7.00 range in October 2000
Technical Analysis: Trend—Down; Resistance—4.31; Support —3.75