Prices at Auction

[StockDogLovr]

So, I've got a few head of mutt beef types that I need to move on because we're about out of pasture grass and I'm having to hay them. Today I went to the sale yard to watch and see what the prices were like for similar cattle. I couldn't make rhyme or reason out of what I saw!

Mine are probably around 650 lb. One 705 lb. black steer went for $1.25/lb, followed by a 705# charlais steer, very nicely built, well covered, that went for $0.79/lb! I couldn't see any health problems, so why the huge difference? A 510 lb. charlais heifer went for $1.40/lb. Later a 800 lb. charlais steer went for $1.01/lb. I know the smaller cattle go for more per lb than the heavier, but things just seemed all over the boards for what appeared to be similar quality cattle. And a typically built 715 lb. black beef cow bred back went for 0.75/lb.

I feel like I need a coach to go with me and explain to me why certain cattle are started at higher initial bids compared to similar cattle that are started lower for some reason. It's not like the auctioneer says out loud "these are preconditioned" and "these aren't preconditioned" or such. How's a person to know what might make some more valuable than others?

Whatever the case, I didn't see any quite as mutty as mine - will mine automatically go for a much lower starting price?

[kycrawler]

depends on the auction . our local auction it depends on what buyers show up whose feed lots are empty . also depends alot about whose cattle they are in the ring . My dad backgrounds cattle for a big feedlot here the owner also sells breeder bulls and when locals bring calves in out of his bulls they call him and he buys most on them back at the auction . So i guess what i am saying is at alot of auctions there is more going on behind the scenes than the average auction goer knows about

[Wanda]

Feeder buyers try to make up uniform groups of calves. The ones that do not fit have fewer bidders and lower prices. When going thru the sale ring it takes 2 bidders to raise the price.

[CIW]

Originally Posted by StockDogLovr

Today I went to the sale yard to watch and see what the prices were like for similar cattle. I couldn't make rhyme or reason out of what I saw!

Mine are probably around 650 lb. One 705 lb. black steer went for $1.25/lb, followed by a 705# charlais steer, very nicely built, well covered, that went for $0.79/lb! I couldn't see any health problems, so why the huge difference? A 510 lb. charlais heifer went for $1.40/lb. Later a 800 lb. charlais steer went for $1.01/lb. I know the smaller cattle go for more per lb than the heavier, but things just seemed all over the boards for what appeared to be similar quality cattle. And a typically built 715 lb. black beef cow bred back went for 0.75/lb.

As for those calves, a person would have had to of seen them and there would of had to been the fight potential buyers there.
Those prices do seem to be a little low though. Probably because they were singles.
Many of the buyers have orders for grass calves this time of year. Those weights were too low for the feedlot, direct, and too high for the grass calves.
Due to the drought and high hay prices of the years recent, many have been culling thier cows really heavy. The quickest and least expensive way to put weight on a cow is to breed her. They then sell them as a hamburger cow. The way that the packer makes his money is by the sale of the by-products. Thats likely why she went for .75/lb. Likely there is a broker/ buyer at that auction each week, that has orders for those cows that they can send straight away. The packers are paying about .77 to .79/lb. right now. Theres the profit for the buyer.
Its frustrating to figure out.

[ramiller5675]

British breeds of cattle (the black one) will sell for more than continental breeds (the charlais) because they will usually grade a little higher at slaughter and will be ready to slaughter a little sooner.

Thin calves will sell for more than fleshy calves of the same weight.

A 715 lb. bred cow is awful small, might have problems calving if kept as a cow in a herd, and would probably be classified as a "Light" cull cow when she was sold since she's likely to not have as much meat yield. Becasue of all that, she's not worth as much as a larger bred cow.

[StockDogLovr]

Thanks for the explanations, all who replied! Helps a little but boy it's complicated!

[Allen W]

It takes a lot of time watching to figure it all out, ask a buyer a question or two once in awhile if you get a chance will help also. Frame, bone, muscle, weight, fatness all come into play as well as color and local demand. The further they have to be shipped the harder they dock the odd cattle and non blacks.

One interesting thing here is after a few years of drought sell off there is very few non black cattle going through the ring.

[haypoint]

It is fun to have a herd of "mutts", but that isn't where the money is. Auction prices are generally predictable, if you understand the market. Black sells higher. uniformity sells higher. Since every market has buyers that create groups of uniform cattle to sell, you must understand that he needs a margin to operate in.
If buyers are looking for 800 pound black steers in good flesh, Your 1000 pound Belted Galloway bred cow isn't going to attract much attention.
In Michigan, there are basically two buyers for cull cows. One buys the ones that clearly will survive a 500 mile road trip. The other buys the ones that might not. Different prices for cattle going to the same place. The second buyer loses some on the trip, but works off a larger margin.
People devote decades of experience, dozens of contacts and daily study of grain and cattle futures. A single visit to a Livestock Auction is likely going to teach you about as much as a single visit to a Zoo.

[opportunity]

We have a local auction if it's not black it doesn't sell well at all but if we go 70 miles down the road you can sell all the colors and horns and not take nearly the hit but the blacks don't sell as well there you need to know your markets and where to go it might be better to drive to another town.

[Raymond James]

In my area if it is not black or it is black but has horns it doesn't sell well. I have purchased many horned cows. I pay more than what they would bring at auction but still get a break on them. I have neighbors that now know to call me when the have one that shows up with horns.

My home freezer customers do not ever see the horns so it makes no difference to them.

I try and sell all mine to home freezer customers try never to sell any at the sale barn.

I spent a couple sessions looking at the auction then decided to drive around and look at herds in the fields and talk to people . Who has young steers they are getting ready to sell.

I found a neighbor that was getting ready to sell, stopped in and looked at a bunch that were going to the barn the next week and bought the smaller, short stocky ones. Did this for several years as the neighbor would call me when he was getting ready to sell. I also took his odd colors and horns. Used to buy 5 or 6 off of him every year. Paying less than what I would have had a the sale barn ( no commission) while he made a little more especially on the odd colors, horns.

Would still be doing that if the wife had not insisted she wanted to have her own moma cows. Now I have 5 to 6 calves myself and do not buy but the odd steer once and awhile.