Marketing, August 5, 2005

By Bryce Myrick
Director, TFB Agricultural Marketing Education

IF YOU HAVE CATTLE, YOU NEED TO READ THIS. Now that we are in the dog days of summer, many cattlemen are trying to figure out at what price they'll be able to sell their fall calves. Although many factors will determine fall prices, this one you need to consider.

On April 1 the six-state Fed Cattle index (FATS) was trading at $93.01 and the Chicago Mercantile Exchange (CME) Feeder Cattle index was $109.64.

Today, July 25, the Fed Cattle index is $79.05 and the Feeder index is $110.60. What has happened since April 1, fat cattle have gone down about $14.00 a hundred, causing cattle coming out of the yard to lose $100-$150 a head. On the feeder side, since April 1, feeder cattle went up in April and May and are now back down to April 1 prices.

Today, the two indexes are $31.55 apart. In October, they will be closer together.

If you have questions or would like an "Outlook for Fall and Winter Cattle Prices" workshop in your county, please contact me.

To set up workshops or for help with your hedging needs, call 254-751-2242 or 915-698-0355 or e-mail: bbmyrick@swconnect.com.