Market stability lent from the recovering stock market and fed cattle trade trickled down to feeder cattle, which were already bristling for a rally.

As usual, health problems on new calf purchases during the fall weather patterns challenged demand, but the availability of feeders is expected to progressively tighten as the industry finally starts to realize the effects of the recent massive herd downsizing due to extreme drought in the Southern Plains and expansion of row crops in the Northern Plains.

Cash yearling feeder cattle prices roughly gained $7 to $10 on their already elevated levels through October and early November, while calves traded $8 to $12 higher.

Finished cattle values recovered from an early fall stumble as packers became aggressive and feedlots remained united to see direct slaughter cattle post a new all-time record high during the second week of November, surpassing the previous record five-area weighted average steer price of 123.16 posted the week ending April 11, 2011.

Feeder demand was very good through the fall run, especially on lightweight calves (steers under 550 pounds and heifers under 500 pounds) and the diminishing supplies of true grass yearlings.

Feedlot replacement buyers were spurred by the bullish fed cattle market and pee-wee calf buyers understand that middle-weight growing cattle will be in short supply next spring to put on grass and turn into hard mid-summer feeders.

However, trading activity was sluggish in comparison for heavier calves (550 to 700 pounds) as they will be too heavy to turn out on spring pasture after being backgrounded through the winter.

Northern feedlots and independent farmer-feeders like to feed these types but prefer to see a little more weather on their cattle before spending some of their harvest money at year’s end.

Southern Plains feedyards have had their fill of feeding calves after trying to grow drought-displaced lightweights all summer and fall on hot rations, since hay and roughage supplies were tight to non-existent.

Some of these yearling-weight calves were offered on the direct feeder market but received the cold shoulder from prospective buyers, as they were too fleshy (fat) and promised an inefficient performance on full feed.

Some of the driest cattle production areas in the U.S. (Texas and Oklahoma) received significant moisture in late October and early November.

Many winter wheat grazers now have hope of at least some grazing prospects, but herds of drought-weary cows will likely outnumber stocker calves on this year’s pastures.

Some of the precipitation fell in the form of early season snow, which triggered flashbacks from last winter’s misery, but conditions moderated for the most part and most cattlemen welcome consistently cooler weather.

There has been much talk this fall about Walmart’s decision to offer Choice beef products in all 3,800 of its stores, which previously only carried Select.

This has helped widen the Choice/Select spread (near $18.00) and should prompt feedlots into altering their programs to produce more high-quality carcasses – perhaps more days on feed, more predominantly English feeder cattle and less use of growth promoters and high-performance feed additives.

Even in hard times, somehow nothing satisfies like a tender juicy steak.