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Feeder cattle prices drop amid volume slump

Market analyst Ed Czerwien provides his weekly market outlook on feeder cattle and slaughter cows.

There was a big drop in feeder cattle numbers at the test auctions with 18,000 head compared to 26,000 head the previous week and 30,000 head last year. Prices were mostly $4-7 lower, but there was some improvement early on Wednesday after the Tuesday CME rally. It did get tougher later on Wednesday.

Slaughter cow prices started a big drop after having much bigger numbers at the auctions lately compared to previous years. Cow prices normally hold up a little longer, but cow meat prices have been steady to weak during the last month and starting to drop a little more now on the heels of bigger cow numbers.

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