Among the factors affecting feeder cattle price, perhaps the most important, in my opinion, is feeder cattle lot size. Cattle producers receive premiums at auction for selling large lots of cattle of a similar type and quality – ideally, a pot-load. For producers selling 500-pound calves, this would equate to approximately 80 head. Premiums for lot size will vary. In Kentucky, 80 head lot sizes receive an average premium of $20-$23 per cwt (Halich and Burdine, 2015).
Lot size is one of the biggest marketing challenges for…
