Alternatively, the term can refer to breeding cattle, such as cows and bulls, which are used for reproduction rather than immediate slaughter. These animals are sold at auction or directly to packing plants based on their carcass characteristics and current beef prices.
Understanding Market Pricing Structures for Feeder and Live Cattle
Breeding cattle often appear more rugged and less filled out compared to slaughter cattle, reflecting their different genetic potential. While "live cattle" in trading often implies animals ready for harvest, it is important to note that the category encompasses both the end-product animals and the genetic donors that sustain the industry.
Feeder cattle are priced per hundredweight (cwt) and are a gamble for both buyer and seller, as their future value depends on the efficiency of weight gain and the prevailing market conditions months down the line. This physical composition is the result of the finishing process and determines the yield grade of the meat.
Understanding Market Pricing Structures for Feeder and Live Cattle
The Definition and Role of Live Cattle Live cattle, in the context of the commodity markets, generally refers to two distinct groups: slaughter cattle and breeding stock. This age gap directly correlates with the physical appearance and biological purpose of the animal.
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