December 15, 2017 Tennessee Market Highlights Number: 50

FED CATTLE: Fed cattle trade was not well established at press. Asking prices on a live basis were mainly $119 while asking prices on a dressed basis were mainly $190.

The 5-area weighted average prices thru Thursday were $117.36 live, down $0.11 from last week and $184.39 dressed, down $2.64 from a week ago. A year ago prices were $110.23 live and $170.31 dressed.

Cattle feeders and packers were slow to trade cattle this week and that could be to the detriment of the packer as December live cattle futures made a strong forward jump on Friday. The strong move on the futures market had cattle feeders asking higher prices compared to the week before and packers had little recourse. The positive price movement this week should not be considered a shining star for cattle feeders as the jostling will continue. It is difficult to determine which way live cattle prices are preparing to head. A breakout to the upside or the downside would be a little surprising so the expectation is that finished cattle will trade sideways during the holiday short-ened weeks. January will provide a little more direction.

BEEF CUTOUT: At midday Friday, the Choice cutout was $201.79 up $0.75 from Thursday and down $3.76 from last Friday. The Select cutout was $183.61 down $0.08 from Thursday and down $2.14 from last Friday. The Choice Select spread was $18.18 compared to $19.80 a week ago.

As the holiday beef buying days have been counting down, there has been no reason for beef packers to get excited as they have not been able to push wholesale beef pric-es higher. The holiday beef buying period has failed to live up to expectations for some while others had probably anticipat-ed the difficulty of moving increased pro-duction at higher prices. The price move-ment the past few weeks resembles the beef market slipping into the winter trend a touch earlier than normal which will impact

packer margins. Interest in loin and rib cuts have provided support for cutout prices, but middle meats will not be able to hold the pace after the holidays have passed. It will then be up to the end meats such as the chuck and round to support the compo-site cutout price. Slightly changing gears, fresh 90 percent lean beef is about $15 per hundred higher than one year ago which has helped support slaughter cow prices this fall. Similarly, 50 percent lean beef pric-es are $15 to $20 higher than last year though they continue to struggle.

OUTLOOK: There was little to no change in the calf and feeder cattle markets this week compared to a week ago based on Tennes-see weekly auction market reports and fu-tures market contracts. Feeder cattle fu-tures have been trading in less than a $4 range for eight consecutive days on the January contract. The tight trading range may signify a number of situations consid-ering the crippling decline since the begin-ning of November. January feeder cattle futures have declined nearly $15 in a month and a half. This downward price movement has most likely been a result of following the live cattle market. However, traders seem to be exhausted as the bears have not been able to force the market lower this week. Feeder cattle cash prices in the country have softened during the same time period the feeder cattle futures have softened, but cash prices have not declined as quickly or to the same extent as futures. This seems to be a case where fundamental cattle trade and technical trade do not align. On the other hand, a major funda-mental situation that has been slowly creeping into the Southern Plains and the Southeast is drought. The drought area continues to carry into the Norther Plains and Montana. The drought situation that has overcome much of cow-calf and stocker grazing country is forcing producers into tough situations. Many stocker cattle are

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Livestock Comments by Dr. Andrew P. Griffith Trends for the Week Compared to a Week Ago

Slaughter Cows

Steady

Slaughter Bulls

Steady

Feeder Steers

Steady to $3 higher

Feeder Heifers

Unevenly steady

Feeder Cattle Index

Wednesday’s index: 154.31

Fed Cattle

The 5-area live price of $117.36 is down $0.11. The dressed price is down $2.64 at $184.39.

Corn

March closed at $3.47 a bushel, down 5 cents since last Friday.

Soybeans

January closed at $9.67 a bushel, down 22 cents since last Friday.

Wheat

March closed at $4.18 a bushel, down 1 cent since last Friday.

Cotton

March closed at 75.92 cents per lb, up 2.2 cents since last Friday.

2

purchased based on currently available forage and expected forage. The currently available forage is beginning to wane and the expectation of forage is near zero if precipitation does not fall in the near term. This will continue to result in softer calf prices as feedlots fill pens with cattle that may have to come off winter annuals earlier than expected. Similarly, many of the stocker producers in the Southern Plains will not be active in purchasing calves due to reduced forage production. The mar-ket and Mother Nature are working against cattle producers at this time. A good rain or two could alleviate much of the dis-tress.

ASK ANDREW, TN THINK TANK: This week has been inter-esting to say the least with questions ranging from sending cattle to the feedlot to running a stocker operation to regis-tered operations. The one key element that has been part of each of these conversations is knowing and understanding the risks involved in the respective stage of production. Every beef cattle operation deals with market risk in cattle prices going down and some deal with the risk of cattle prices going up. An-other risk faced by most operations is health risks. The specific health risks vary across cow-calf, stocker, feedlot, and seed-stock producer but health risks are always present. This discus-sion could go on for a while, but the point is that producers and potential producers should evaluate cattle production alterna-tives and determine which risks they are better able to manage. Going through this process will likely result in a more positive outcome.

Please send questions and comments to agriff14@utk.edu or send a letter to Andrew P. Griffith, University of Tennessee, 314B Morgan Hall, 2621 Morgan Circle, Knoxville, TN 37996.

FRIDAY’S FUTURES MARKET CLOSING PRICES: Friday’s closing prices were as follows: Live/fed cattle –December $118.90 +2.63; February $121.03 +1.88; April $122.15 +1.85; Feeder cattle –January $147.75 +1.50; March $145.55 +1.20; April $145.93 +1.23; May $145.65 +1.30; December corn closed at $3.48 down $0.01 from Thursday.

(Continued from page 1)

Livestock Comments by Dr. Andrew Griffith

Thursday December 14, 2017

Month Class III Close Class IV Close

Dec 15.51 13.60

Jan 14.70 13.34

Feb 14.50 13.44

Mar 14.52 13.65

Apr 14.66 13.85

Milk Futures

Cattle Hogs

———— Number of head ————

This week (4 days) 118,750 466,500

Last week (4 days) 119,250 463,500

Year ago (4 days) 115,000 441,000

This week as percentage of

Week ago (%) 100% 101%

Year ago (%) 103% 106%

Average Daily Slaughter USDA Box Beef Cutout Value

Choice 1-3 600-900 lbs

Select 1-3 600-900 lbs

———————— $/cwt —-———————

Thursday 201.04 183.69

Last Week 205.08 183.83

Year ago 190.88 176.37

Change from week ago -4.04 -0.14

Change from year ago +10.16 +7.32

3

Crop Comments by Dr. Aaron Smith

Overview Corn, soybeans, and wheat were down; and cotton was up for the week. With U.S. harvest complete, commodity markets will now shift focus to South American crop progress and U.S. exports. Each Thursday, the USDA Foreign Agricultural Service provides a summary of export sales for agricultural prod-ucts (weekly numbers for corn, soybeans, cotton, and wheat are quoted be-

low). Data in the report are broken into two general categories of export sales: 1) exports (shipped); and 2) outstanding sales (sales that have not been shipped). Together these categories make total export sales commitments. These two categories are often compared to the USDA total marketing year projected exports - the export estimates contained (and revised) each month in the USDA WASDE report. For the 2017/18 marketing year (MY), the USDA projects total exports of corn, soybeans, upland cotton, and wheat to be 1.925 billion bushels, 2.225 billion bushels, 13.74 million bales, and 975 million bushels, respectively. As of the week ending December 7, accumulated exports (shipped from the start of the MY) were: 346 million bushels of corn (18% of the MY total); 893 million bushels of soybeans (40% of the MY total); 2.603 million bales of cotton (19% of the MY total); and 456 million bushels of wheat (47% of the MY total). In addition to exports, each commodity has outstanding sales (sales that have not been shipped). As of December 7, outstanding sales were: 590 million bushels of corn (31% of the MY total); 496 million bushels of soybeans (22% of the MY total); 7.489 million bales of upland cotton (54% of the MY total); and 213 million bushels of wheat (22% of the MY total). Combine the two categories and you get total export sales commitments to date for the MY. Currently estimated at: 936 million bushels of corn (49% of the MY total); 1.389 million bushels of soybeans (62% of the MY total); 10.09 million bales of cotton (73% of the MY total); and 669 million bushels of wheat (69% of the MY total). Outstanding sales are more unsecure than export sales as they can be deferred (resulting in an adverse impact on future sales) or cancelled. As such, while total export sales commitments provide valuable information on the direction exports are potentially go-ing it is important to examine the amount of export sales versus outstanding sales. Caution needs to be exercised when comparing weekly sales (i.e. taking the MY total and dividing by 52 weeks). Significant season-al variation in export sales exists for each commodity. In general, export sales are highest during and immediately following harvest – a time when supplies are the most abundant. Also, it is important to note that each commodity has its own specific MY (i.e. corn - MY: September 1 to August 31; wheat – MY: June 1 to May 31). Corn In Tennessee, January 2018 corn cash forward contracts averaged $3.53 with a range of $3.46 to $3.58. March 2018 corn futures closed at $3.47 down 5 cents since last Friday. For the week, March 2018 corn futures traded between $3.46 and $3.53. Across Tennessee, average basis (cash price-nearby futures price) strengthened or remained unchanged at Memphis, Northwest Barge Points, Northwest, Lower-middle, and Upper-middle Tennessee. Overall, basis for the week ranged from 26 under to 3 over the March futures contract with an average of 8 under at the end of the week. Corn net sales reported by exporters from December 1-7 were within expectations with net sales of 34.1 million bushels for the 2017/18 marketing year. Exports for the same time period were up from last week at 27.2 million bushels. Corn export sales and commitments were 49% of the USDA estimated total annual

(Continued on page 4)

4

Crop Comments by Dr. Aaron Smith

exports for the 2017/18 marketing year (September 1 to August 31) compared to a 5-year average of 53%. Ethanol production for the week ending December 8 was 1.089 million barrels per day down 19,000 from the previous week. Ethanol stocks were 22.374 million barrels, down 170,000 barrels. Mar/May and Mar/Dec future spreads were 8 and 33 cents, respectively. May 2018 corn futures closed at $3.55 down 6 cents since last Friday. December 2018 corn futures closed at $3.80 down 5 cents since last Friday. Downside price protection could be obtained by purchasing a $3.80 December 2018 Put Option costing 24 cents establishing a $3.56 futures floor. Soybeans In Tennessee, January 2018 soybean cash contracts average $9.78 with a range of $9.48 to $9.98. January 2018 soybean futures closed at $9.67 down 22 cents since last Friday. For the week, January 2018 soybean futures traded between $9.64 and $9.89. Av-erage soybean basis strengthened or remained unchanged at Memphis, Northwest Barge Points, Lower-middle, and Northwest Tennessee and weakened at Upper-middle Tennessee. Basis ranged from 40 under to even the January futures contract at eleva-tors and barge points. Average basis at the end of the week was 19 under the January futures contract. Net sales reported by ex-porters were within expectations with net sales of 53.4 million bushels for the 2017/18 marketing year and 4.2 million bushels for the 2018/19 marketing year. Exports for the same period were down from last week at 46.3 million bushels. Soybean export sales and commitments were 62% of the USDA estimated total annual exports for the 2017/18 marketing year (September 1 to August 31), compared to a 5-year average of 79%. January/March soybean-to-corn price ratio was 2.79 at the end of the week.

Jan/Mar and Jan/Nov future spreads were 11 and 20 cents, respectively. March 2018 soybean futures closed at $9.78 down 23 cents since last Friday. November 2018 soybean futures closed at $9.87 down 17 cents since last Friday. Downside price protection could be achieved by purchasing a $10.00 November 2018 Put Option which would cost 61 cents and set a $9.39 futures floor. No-vember/December 2018 soybean-to-corn price ratio was 2.60 at the end of the week. Cotton Delta upland cotton spot price quotes for December 14 were 74.58 cents/lb (41-4-34) and 76.33 cents/lb (31-3-35). Adjusted world price (AWP) increased 0.92 cents to 65.95 cents per pound. March 2018 cotton futures closed at 75.92 cents up 2.2 cents since last Friday. For the week, March 2018 cotton futures traded between 72.76 and 76.75 cents. Net sales reported by exporters were up from last week with net sales of 259,700 bales for the 2017/18 marketing year and 36,000 bales for the 2018/19 marketing year.

(Continued on page 5)

5

Crop Comments by Dr. Aaron Smith

Exports for the same period were down from last week at 166,600 bales. Upland cotton export sales were 73% of the USDA esti-mated total annual exports for the 2017/18 marketing year (August 1 to July 31), compared to a 5-year average of 62%. Mar/May and Mar/Dec cotton futures spreads were 0.4 cents and -3.04 cents, respectively. May 2018 cotton futures closed at 76.32 up 0.4 cents since last Friday. December 2018 cotton futures closed at 72.88 up 0.8 cents since last Friday. Downside price protection could be obtained by purchasing a 73 cent December 2018 Put Option costing 4.52 cents establishing a 68.48 cent futures floor. Wheat In Memphis, old crop cash wheat ranged from $3.62 to $4.23. March 2018 wheat futures closed at $4.18 down 1 cent since last Friday. March 2018 wheat futures traded between $4.10 and $4.21 this week. March wheat-to-corn price ratio was 1.20. Wheat net sales reported by exporters were above expectations with net sales of 21.6 million bushels for the 2017/18 marketing year and 0.3 million bushels for the 2018/19 marketing year. Exports for the week were down from last week at 11.1 million bushels. Wheat export sales were 69% of the USDA estimated total annual exports for the 2017/18 marketing year (June 1 to May 31), compared to a 5-year average of 74%. Mar/May and Mar/Jul future spreads were 12 cents and 26 cents, respectively.

May 2018 wheat futures closed at $4.30 down 1 cent from last Friday. In Tennessee, June/July 2018 cash forward contracts ranged from $4.17 to $4.61 for the week. July 2018 wheat futures closed at $4.44 down 1 cent since last Friday. Downside price protection could be obtained by purchasing a $4.50 July 2018 Put Option costing 28 cents establishing a $4.22 futures floor. Additional Information: Links for data presented:

U.S. Export Sales - https://apps.fas.usda.gov/export-sales/esrd1.html

USDA FAS: Weekly Export Performance Indicator – https://apps.fas.usda.gov/esrquery/esrpi.aspx

EIA: Weekly ethanol Plant Production - https://www.eia.gov/dnav/pet/pet_pnp_wprode_s1_w.htm

EIA: Weekly Supply Estimates - https://www.eia.gov/dnav/pet/pet_sum_sndw_a_EPOOXE_sae_mbbl_w.htm

Upland Cotton Reports - https://www.fsa.usda.gov/FSA/epasReports?area=home&subject=ecpa&topic=fta-uc

Tennessee Crop Progress - https://www.nass.usda.gov/Statistics_by_State/Tennessee/Publications/Crop_Progress_&_Condition/

U.S. Crop Progress - http://usda.mannlib.cornell.edu/MannUsda/viewDocumentInfo.do?documentID=1048

USDA AMS: Market News - https://www.ams.usda.gov/market-news/search-market-news

If you would like further information or clarification on topics discussed in the crop comments section or would like to be added to our free email list please contact me at aaron.smith@utk.edu.

6

Friday, December 8, 2017 — Thursday, December 14, 2017

Commodity Contract Month Friday Monday Tuesday Wednesday Thursday

Soybeans Jan 9.89 9.82 9.75 9.79 9.67

($/bushel) Mar 10.01 9.94 9.87 9.90 9.78

May 10.12 10.05 9.98 10.01 9.89

Jul 10.21 10.14 10.07 10.11 9.99

Aug 10.22 10.15 10.09 10.12 10.01

Sep 10.13 10.07 10.01 10.04 9.94

Corn Dec 3.40 3.36 3.35 3.36 3.36

($/bushel) Mar 3.52 3.49 3.47 3.49 3.48

May 3.61 3.57 3.56 3.57 3.56

Jul 3.69 3.65 3.64 3.65 3.65

Sep 3.76 3.73 3.71 3.72 3.72

Dec 3.85 3.81 3.80 3.81 3.80

Wheat Dec 3.92 3.87 3.87 3.92 3.95

($/bushel) Mar 4.19 4.13 4.10 4.16 4.18

May 4.32 4.27 4.24 4.29 4.30

Jul 4.45 4.41 4.37 4.42 4.43

Sep 4.59 4.56 4.50 4.55 4.57

Soybean Meal Dec 330 326 322 325 321

($/ton) Jan 331 327 324 326 321

Mar 335 331 328 330 325

May 337 334 331 333 328

Jul 339 336 333 335 330

Aug 339 336 333 335 330

Cotton Mar 73.72 73.00 72.91 74.13 75.33

(¢/lb) May 74.20 73.58 73.50 74.55 75.63

Jul 74.39 73.89 73.87 74.87 75.97

Oct 73.02 72.64 72.42 73.16 73.57

Dec 72.08 71.93 71.56 72.30 72.47

Live Cattle Dec 115.57 115.17 116.15 115.65 116.27

($/cwt) Feb 118.30 117.72 119.15 118.37 119.15

Apr 120.20 119.62 120.97 120.20 120.30

Jun 113.10 112.60 113.92 113.30 113.35

Aug 110.57 109.95 111.02 110.50 110.32

Feeder Cattle Jan 145.22 145.45 147.10 145.65 146.25

($/cwt) Mar 143.32 143.32 145.30 144.05 144.35

Apr 143.65 143.45 145.32 144.02 144.70

May 143.72 143.35 145.17 143.82 144.35

Aug 145.52 145.30 147.27 145.95 146.70

Sep 145.07 145.30 147.00 145.42 146.25

Market Hogs Dec 63.67 63.60 63.75 63.95 64.02

($/cwt) Feb 68.85 67.02 66.52 66.80 67.62

Apr 73.12 71.82 71.17 71.47 72.25

May 78.52 77.27 76.77 76.80 77.60

Jun 83.27 82.17 81.57 81.67 81.62

Futures Settlement Prices: Crops & Livestock

7

Cattle Receipts: This week: 6,251 (10) Week ago: 10,127 (11) Year ago: 9,222 (10)

This Week Last Week Year Ago

Low High Weighted Average Weighted Average Weighted Average

—————————————————————— $/cwt ——————————————————————

Steers: Medium/Large Frame #1-2

300-400 lbs 144.00 190.00 162.82 153.32 138.67

400-500 lbs 130.00 175.00 149.49 151.78 129.96

500-600 lbs 125.00 156.00 143.22 141.08 121.70

600-700 lbs 121.00 151.00 137.58 136.00 117.37

700-800 lbs 122.00 143.00 131.12 130.49 111.72

Steers: Small Frame #1-2

300-400 lbs 132.50 162.50 150.67 144.57 ———

400-500 lbs 120.00 148.00 133.07 134.84 102.49

500-600 lbs 120.00 127.50 123.71 134.03 ———

600-700 lbs ——— ——— ——— 124.51 105.63

Steers: Medium/Large Frame #2-3

300-400 lbs 132.50 170.00 150.99 144.97 122.64

400-500 lbs 120.00 155.00 140.02 139.23 114.54

500-600 lbs 113.00 146.00 133.04 132.21 109.32

600-700 lbs 110.00 134.00 124.05 125.77 103.81

700-800 lbs 106.00 120.00 113.11 115.13 103.46

Holstein Steers

300-400 lbs ——— ——— ——— 88.53 ———

500-600 lbs ——— ——— ——— 88.23 60.00

700-800 lbs ——— ——— ——— 81.21 57.53

Slaughter Cows & Bulls

Breakers 75-80% 42.00 47.79 46.33 47.87 52.50

Boners 80-85% 50.26 50.47 50.92 42.00 57.50

Lean 85-90% 30.00 56.50 44.05 43.93 45.44

Bulls YG 1 65.00 79.00 73.01 73.36 71.84

Heifers: Medium/Large Frame #1-2

300-400 lbs 120.00 153.00 136.62 135.68 119.26

400-500 lbs 113.00 145.00 130.76 130.57 111.23

500-600 lbs 111.50 135.00 125.02 125.53 105.69

600-700 lbs 105.00 129.00 119.46 121.67 102.77

Heifers: Small Frame #1-2

300-400 lbs 112.50 137.50 126.02 128.01 97.08

400-500 lbs 100.00 125.00 110.30 120.13 86.11

500-600 lbs 99.00 125.00 118.01 117.98 ———

600-700 lbs ——— ——— ——— 104.89 ———

Heifers: Medium/Large Frame #2-3

300-400 lbs 117.00 145.00 128.59 128.84 105.36

400-500 lbs 107.00 133.00 120.41 120.40 103.55

500-600 lbs 104.00 121.00 114.71 115.34 96.39

600-700 lbs 100.00 116.00 108.17 113.42 92.25

Prices on Tennessee Reported Livestock Auctions for the week ending December 15, 2017

8

Friday, December 8, 2017 — Thursday, December 14, 2017

Friday Monday Tuesday Wednesday Thursday

Low High Low High Low High Low High Low High

———————–——————————————— $/bushel ———————————————————–———

No. 2 Yellow Soybeans

Memphis 9.79-9.81 9.74-9.76 9.67-9.69 9.74-9.79 9.62-9.67

N.W. B.P. 9.75-9.77 9.68-9.73 9.63-9.69 9.71-9.78 9.59-9.67

N.W. TN 9.59-9.67 9.52-9.60 9.45-9.53 9.49-9.56 9.32-9.45

Upper Md. 9.61-9.65 9.52-9.57 9.46-9.51 9.49-9.54 9.38-9.42

Lower Md. 9.50-9.55 9.48-9.52 9.36-9.41 9.40-9.44 9.28-9.33

Yellow Corn

Memphis 3.47-3.55 3.44-3.52 3.42-3.50 3.44-3.52 3.43-3.51

N.W. B.P. 3.49-3.54 3.46-3.51 3.44-3.49 3.46-3.50 3.48-3.49

N.W. TN 3.20-3.52 3.30-3.34 3.28-3.47 3.29-3.49 3.29-3.48

Upper Md. 3.27-3.37 3.24-3.35 3.23-3.33 3.24-3.34 3.23-3.33

Lower Md. 3.41-3.45 3.35-3.37 3.36-3.40 3.39-3.41 3.39-3.41

Wheat

Memphis 3.67-4.24 3.62-4.18 4.15-4.15 4.21-4.21 4.23-4.23

Prices Paid to Farmers by Elevators

100

120

140

160

180

200

220

Tennessee 500-600 lbs. M-1 Steer Prices2016, 2017 and 5-year average

2011/2015 Avg 2016 2017

85

105

125

145

165

185

Tennessee 700-800 lbs. M-1 Steer Prices2016, 2017 and 5-year average

2011/2015 Avg 2016 2017

8595

105115125135145155

5-Area Finished Cattle Prices2015, 2016 and 5-year average

2011/2015 Av g 2016 2017

35455565758595

105

Tennessee Slaughter Cow PricesBreakers 75-80%

2015, 2016 and 5-year average

2011/2015 2 016 2017

9

East Tennessee Livestock Center - December 13, 217 1 load out of 69 steers; BQA certified producer; est. wt. 800 lbs.; 95% L&M-1s, 5% L&M 2s; medium flesh; 80% Blk/BWF, 10% ChaX/Smoky, 10% Red/RWF; $142.25 1 load out of 100 steers; BQA certified producer; est. wt. 826 lbs.; $95% L&M1 s, 5% L&M 2s; medium flesh; 100% Blk/BWF; $145.50 1 load out of 125 Holstein steers; BQA certified producer; est. wt. 900 lbs.; 100% #1s; medium flesh; $95.25 Hardin County Stockyard - December 13, 2017 1 load of 56 steers; avg. wt. 914 lbs.; $140.00

Warren Co. Livestock Graded Sale, McMinnville, TN Weighted Average Report for Wednesday Dec 6, 2017 Cattle Receipts: 1294 For complete report: https://www.ams.usda.gov/mnreports/nv_ls189.txt

12/12/17 Somerville Livestock Sales Receipts: 115 Steers/Bulls: Med & Lg 1-2 Heifers: Med & Lg 1-2 300-400 lbs 150.00-155.00 300-400 lbs 119.00-125.00 400-500 lbs 140.00-152.00 400-500 lbs 121.00-133.00 500-600 lbs 134.00-142.00 500-600 lbs 113.00-122.00 600-700 lbs 116.00-120.00 Vaccinated Steers: Med & Lag 1-2 550-600 lbs 147.00 600-700 lbs 140.00 700-800 lbs 128.00 12/12/17 TN Livestock Producers Fayetteville Receipts: 360 (183 graded & grouped) Steers: Med & Lg 1-2 Heifers: Med & Lg 1-2 300-400 lbs 155.00-162.00 300-400 lbs 130.00-142.00 400-500 lbs 160.00-165.00 400-500 lbs 126.00-137.50 500-600 lbs 150.50-156.50 500-600 lbs 120.50-135.00 600-700 lbs 140.00-150.00 600-700 lbs 119.00-120.00 700-800 lbs 131.00-131.50 700-800 lbs 118.00 800-900 lbs 128.50 800-900 lbs 75.00-87.00 Bulls: Med & Lg 1-2 400-500 lbs 149.00-160.00 500-600 lbs 135.50-149.00 600-700 lbs 124.00

Video Sales & Loads Self-Reported and Self-Graded Livestock Markets

700-800 lbs 110.00-115.00 12/11/17 Morris Brothers Stockyard, Pikeville, TN Receipts: 129 Last Week: 225 Last Year: 97 Steers: Heifers: 200-249 lbs 162.50-163.00 200-249 lbs 129.00 250-299 lbs 157.00-166.00 250-299 lbs 110.86-140.00 300-349 lbs 152.00-155.00 300-349 lbs 98.98-127.00 350-399 lbs 146.00 350-399 lbs 110.00 400-449 lbs 100.00-137.00 400-449 lbs 126.00 550-599 lbs 103.19-134.00 450-499 lbs 126.00-130.00 600-699 lbs 126.00-134.00 500-549 lbs 115.53-131.00 Over 799 lbs 62.00-92.00 550-599 lbs 80.00 600-699 lbs 84.00-122.50 700-799 lbs 114.00 Bulls: Other: 250-299 lbs 136.00-155.00 Head Cows: 845.00-1100.00 300-349 lbs 120.00-140.00 Slaughter Cows (under 900 lbs): 49.67-121.00 350-399 lbs 131.00 Slaughter Cows (over 900 lbs): 35.00-65.00 400-449 lbs 119.00-133.00 Slaughter Bulls (901-1500 lbs): 82.00 450-499 lbs 110.00-126.00 550-599 lbs 111.00-126.00 600-699 lbs 116.00-122.00 700-799 lbs 107.00-110.00 800-999 lbs 100.00 12/8/17 Coffee County Livestock Market Graded Goat and Sheep Sale - Manchester, TN Receipts: 410 (343 Goats; 67 Sheep) Next Sale Dec 22, 2017 Goats sold per hundred weight (cwt) unless otherwise noted, weights, actual or estimated. Slaughter Classes: Kids Selection 1 Selection 2 Selection 3 20-30 lbs 265.00-275.00 250.00-260.00 180.00-200.00 31-45 lbs 255.00-260.00 249.00-260.00 239.00-243.00 46-60 lbs 260.00-265.00 240.00-250.00 220.00-245.00 61-80 lbs 239.00-240.00 81-100 lbs 215.00-235.00 170.00-200.00 165.00 Feeders 25-55 lbs 200.00-220.00 Replacement Nanny Goats Yearlings 50-100 lbs 180.00-225.00 Small 76.00-110.00 Nannies 76-125 lbs 134.00-141.00 Medium 120.00-142.00 Nannies Over 125 lbs Large 150.00-215.00 Nannies Thin 111.00-135.00 Billies 76-125 lbs 155.00-180.00 Billies Thin 135.00-148.00

(Continued on page 10)

Graded Sales

Self-Reported and Self-Graded Livestock Markets

10

Informed Consumers Won’t Pay More For ‘Natural’ Greg Henderson December14, 2017

Consumers are willing to pay more for steak labeled “natural,” unless they know the definition of “natural.”

Researchers at Arizona State University asked 663 beef eaters about their willingness to pay for steak labeled with different attributes: natural, grass-fed or corn-fed, fed without genetical-ly modified feed and produced without growth hormones or antibiotics. Half of the participants were provided with the defi-nition of natural and half were not.

Those consumers who were unfamiliar with USDA natural la-bels were willing to pay $1.26 per pound more for those steaks labeled natural. But those provided the definition of natural were unwilling to pay more for those steaks.

USDA’s Food Safety and Inspection Service says all fresh meat qualifies as “natural,” but beef that carries a “natural” label cannot contain any artificial flaors or flavorings, coloring ingre-dients, chemical preservatives or other artificial or synthetic ingredients. Additionally, natural products must not be more than “minimally processed.” Hamburger falls under the mini-mally processed umbrella, so it can be labeled natural.

Consumers in the Arizona State study who were unfamiliar with the definition of natural were willing to pay even more when that label was coupled with other attributes, as much as $2.43 per pound more for natural and no growth hormones.

Those provided the USDA definition were not willing to pay a premium for the natural label alone, but were willing to pay $3.07 per pound more for steak labeled natural and no growth hormones.

The abstract of the study was published in Applied Economic Perspectives and Policy.

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SHEEP: Slaughter Lambs-Includes all breeds, sold per hundred weight (cwt). Choice and Prime 40-60 lbs 220.00-230.00 Good 176.00-201.00 Choice and Prime 60-80 lbs 177.00-186.00 Good Choice and Prime 80-100 lbs 169.00 Good 166.00 Choice and Prime 100-120 lbs 135.00-142.00 Good 134.00 Choice and Prime over 125 lbs 135.00 Feeders 25-65 lbs 163.00-185.00 Yearlings 111.00-142.00 Ewes 102.00-120.00 Replacement Ewes: Ewes Fat 125-130 lbs 142.50-145.00 Rams 93.00-104.00 Rams Fat

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