Cattle prices in dollars per hundredweight (cwt.) except some replacement animals per pair or head as indicated.

NATIONAL SLAUGHTER CATTLE

(Federal-State Market News)

Oklahoma City-Des Moines

Jan. 18

Compared to Jan. 11: Slaughter cattle $2 lower on a live basis. Demand moderate. Dressed sales in Nebraska on few comparable sales at $2-3 lower. Boxed beef prices Jan. 18 averaged $189.02 up $.78 from Jan. 11. The Choice/Select spread is at $10.41. Slaughter cattle on a national basis for negotiated cash trades through Jan. 18 totaled about 55,128 head. The previous week's total head count was 88,325.

Midwest Direct Markets: Live Basis: Steers and Heifers 35-80 Percent Choice, 1200-1400 lbs. $125-126 Dressed Basis: Steers and Heifers: $201-203.

South Plains Direct Markets: Live Basis: Steers and Heifers 35-65 percent Choice, 1100-1400 lbs. $125-126.

Slaughter Cows and Bulls (Average Yielding Prices): Slaughter cows and bulls sold steady to $3 higher compared to those sold before the holidays.

USDA's Cutter cow carcass cut-out value Jan. 18 was $164.58 up $1.48 from Jan. 11.

NATIONAL FEEDER AND STOCKER CATTLE

(Federal-State Market News)

St. Joseph, Mo.

Jan. 18

This week Last week Last year

477,200 400,100 455,800

Compared to Jan. 11, feeder calves and short-yearlings weighing over 600 lbs. opened the week $3-5 lower which turned to $4-8 lower by week's end. Lighter-weight steer and heifer calves traded unevenly steady with trends ranging from $5 higher to $5 lower with the higher prices again earlier in the week.

The tight supply driven joy ride that cattle markets have enjoyed recently in the face of severe feed shortages and the struggling economy encountered hurdles in its path this past week. Pressure began with a USDA report Jan. 11 that drastically lowered grain stock estimates and placed fear within the agricultural markets that rationing may become a reality (most likely through pricing). CME cattle futures latched on to the lead balloon and immediately weighed on cash feeder markets which already entered the week with many outlets clogged from the previous week's heavy movement. More bearish news surfaced on Jan. 17 that Cargill plans to halt production at its Plainview, Texas, beef processing facility, wiping out 4,500 head harvest capacity per day. Nearby CME Live Cattle contracts lost nearly $8 in just eight trading sessions while January Feeder Cattle futures fell over $9. Direct fed cattle sales were $1-2.50 lower from $122.50-125 after the cash market nearly eclipsed the $130 all-time record just two weeks earlier in Colorado. Many major salebarns there are seeing their heaviest receipts of the year during the annual Stock Show Specials that coincide with the National Western sale in Denver. Unfortunate timing of the volatile feeder market will cause wide price spreads in the marketing of these high-country cattle. However, many impressive sales of hardened winter proof feeders can be found around the circuit, like over 650 head of fancy 650-700 lb. steers in Bassett, Neb., on Jan. 16 that averaged over $170.25. But overall demand was much better for lightweight stockers as more grass grazers enter the market each week with the understanding that supplies are already dwindling and will be down to a trickle by spring. Not only can these light cattle achieve cheap gains if pasture develops, they can also be finished on corn from the 2013 new-crop. Calves under 450 lbs. conceivably could get higher every day until June and any moisture between now and then should increase the rate of speed as these cattle have all the options. Any calves much heavier than 500 lbs. will be unfit for grass by April and unlike other times of the year, the bulk of current calf sales will not be offered back on the feeder market. Heavy rains and wintry conditions curbed receipts and demand in the deep Southeastern calf markets, but this area should reap the rewards of their ample moisture somewhere down the road. This week's reported auction volume had 58 percent over 600 lbs. and 42 percent heifers.

AUCTIONS

This week Last week Last year

293,100 345,100 298,500

WASHINGTON 3,100. 76 pct over 600 lbs. 43 pct heifers. Steers: Medium and Large 1-2 550-600 lbs. $159.68; 600-650 lbs. $145.93; 650-700 lbs. $146.81; 700-750 lbs. $137.86; 750-800 lbs. $139.51; 800-850 lbs. $130.25; 850-900 lbs. $132.98. Heifers: Medium and Large 1-2 450-500 lbs. $147.24; 500-550 lbs. $143.61; 550-600 lbs. $140.48; 600-650 lbs. $137.11; 650-700 lbs. $140.37; 700-750 lbs. $134.94.

DIRECT

This week Last week Last year

33,400 48,500 82,000

SOUTHWEST (Arizona-California-Nevada) 1,900. No cattle over 600 lbs. No heifers. Holsteins: Large 3 May 275 lbs. $165 Del.

NORTHWEST (Washington-Oregon-Idaho) 500. 100 pct over 600 lbs. No heifers. Steers: Medium and Large 1-2 Current FOB 850-900 lbs. $144.50 early Idaho.

NORTHWEST DIRECT CATTLE

(USDA Market News)

Moses Lake, Wash.

Jan. 18

This week Last week Last year

500 7,850 2,700

Compared to last week, not enough feeder cattle reported this week for accurate trends. Trade turned to a standstill after last week's active market due to a lower futures market and feedlots not as aggressive. Demand is light. The feeder supply included 100 percent steers and 0 percent heifers. Near 100 percent of the supply weighed over 600 lbs. Prices are FOB weighing point with a 1-4 percent shrink or equivalent and with a 5-10 cent slide on calves and a 3-6 cent slide on yearlings.

Steers: Medium and Large 1-2: Current FOB Price: 850-900 lbs. $144.50 early, Idaho.