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New Mexico | Week ending Feb 26th there were approx. 11,000 cash cattle out of the SW and 47,000 head of formula cattle.
Week ending March 5th, approx. 21,000 cash cattle and 51,000 formula cattle. SW
Week ending March 12th, approx 35,000 cash cattle, and 45,000 formula cattle. SW
Formula cattle generally go out at top par price or $.50 over quoted cash, AFTER the reported weekly cash facts ( thus formulas are at non reported prices ).
Also formula supply deals can generally favor the seller on weighing conditions ( less or no shrink etc ).
Over the past year there has been a significant increase in formula cattle at the beginning of the week on showlists, BUT subsequently commited to packers at the top of the market or 50 cents cwt over.
In the past those cattle counted as part of the cash trade according to some market report organizations.
Following definitions of Mandatory Price Reporting though, those should perhaps instead be counted as Formula Trade and accounted for as such, ACTUAL Prices and weigh conditions ( even though After the fact of weekly cash trade ) reported as such etc.
Just figured the Midwest producers should be aware of the SW Formula deal.
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Formula Fat Prices
