Feedyards and beef processors will soon have a new way to negotiate trade. Superior Livestock Auction has created FedCattleExchange.com, an electronic auction format that will facilitate the trade of fed cattle. Danny Jones, president of SLA, says the need for this type of market interaction stems from a lack of cash sales.
“We have seen in the last few months situations arise that have caused there to be a need for this that’s recognized from both sides of the aisle,” he says. “We really feel that it’s wanted as badly from the buyers’ standpoint as it is the sellers’.”
The online sales will begin at 10 a.m. (CDT) every Wednesday starting May 25.
Jones says that in addition to managing supply, the new online sale will help increase cash-negotiated trade in the five- area average, which is key in determining the formula trade.
“I think the industry is really cooperating together - the packers and the feedyards alike are anxious to see this happen,” he says.
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