Price Discounts for South Carolina Feeders: Feeder Steers vs. Feeder Bulls
Applied Research
Matthew Fischer
Columbia
Abstract
Feeder cattle markets differentiate prices based on animal characteristics that influence expected feeding performance and production risk. One of the most consistent price signals in auction markets is the discount applied to intact male calves relative to castrated male calves. This study evaluates the magnitude and seasonal behavior of the feeder bull discount in South Carolina auction markets during a period of historically strong cattle prices. Using USDA Agricultural Marketing Service (AMS) reported sale barn data, monthly prices for feeder steers and feeder bulls in the 400–499 lb. and 500–599 lb. weight classes were analyzed from 2020 through 2024. The objective was to measure the price differential between feeder steers and feeder bulls. and determine whether discount patterns changed during the recent cattle supply contraction and rising feeder cattle prices. Results show that feeder bulls were consistently discounted relative to feeder steers across all years and weight classes. Discounts increased with animal weight reflecting the higher expected cost of delayed castration, increased health risk, and management challenges faced by feedlot operators. Seasonal patterns were also observed, with the largest discounts occurring during late summer and fall marketing periods when feeder cattle volumes typically increase. Despite the rapid rise in feeder cattle prices beginning in late 2022 and continuing through early 2024, the bull–steer discount persisted and widened, indicating that buyers continue to internalize production risk even during strong price environments. These findings highlight the economic importance of early castration and comprehensive herd health management for cow–calf producers marketing feeder cattle in the Southeast. Management practices that reduce perceived feeding risk remain critical for capturing price premiums in auction markets. Understanding the seasonal and structural behavior of the feeder bull discount can help producers make management and marketing decisions that improve returns and reduce avoidable price penalties.
Poster has NOT been presented at any previous NACAA AM/PIC
This poster is being submitted for judging. It will be displayed at the AM/PIC if not selected as a State winner. The abstract will be published in the proceedings.
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Authors: Matthew Fischer
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Fischer, M. Extesnion Associate, Clemson University, South Carolina, 29229