U.S. Cattle Auction Halts Activity in Blow to Producers, Traders

The big packers are basically the only buyers of finished cattle. Why would we expect them to show up at an auction where they are forced to compete out in the open for the livestock they are currently stealing?

Mike C.

U.S. Cattle Auction Halts Activity in Blow to Producers, Traders

Thursday, June 30, 2016/Categories: General News, Today’s Top 5, People in Ag, Livestock, Cattle, National News

U.S. Cattle Auction Halts Activity in Blow to Producers, Traders

Reuters reported that organizers of an online U.S. cattle auction that ranchers and traders had hoped would help restore transparency to livestock pricing nationwide announced on Wednesday they would suspend activity indefinitely after just four sessions.

The Fed Cattle Exchange, which held its first live feeder cattle auction on May 25, determined that it needed to halt operations to fix technology problems, according to a notice posted on its website.

Superior Livestock Auction, a well-known cattle auctioneer that owns the exchange, also wanted to address some participants’ concerns about the format of the market, President Danny Jones said in an interview.

The suspension came as a blow to producers and traders who have worried for years that the U.S. method for pricing cattle headed to slaughter could incorrectly value animals and bring in less money for those who raise livestock.

"It is an unfortunate pause that we’re going to need to take, but it’s necessary," Jones said

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