However, higher prices for feeder cattle tend to expand the top end of the ranges (i.e. The magnitude of these price differences varies greatly given market conditions and overall consumer demand. During the cattle cycle, price differences tend to widen during periods of contraction and narrow during periods of growth. For heavier feeder cattle, the price difference climbs through the year, peaking in the summer, before declining again. In Nebraska, for lighter feeder cattle, the price difference tends to be largest in winter and slowly declines through the year. Price differences are larger for lighter cattle (500-599 pounds) versus heavier cattle (700-799 pounds) due to the price weight slide (see Tables 1 and 2). Nebraska feeder cattle provide a good indicator of how these price differences have varied over time, within season, and across weight class.

This difference varies over time driven by the cattle cycle and seasonally due to the availability of total feeder cattle available to feedlots to place on feed. Large price differences provide incentives for heifers to be retained in the herd. Heifer calves are generally discounted relative to steers due to their tendency to finish at lower weights, with lower daily gains, and higher feed conversions. The steer and heifer price difference could work to slow some of these placements. There continues to be a high percentage of total cattle on feed that are heifers, indicating that the breeding herd will be smaller in 20. This article was first published in October 2022 by 'In the Cattle Markets.'

Feeder cattle prices