PECIAT,T7FD feeder cattle auction sales are held in all major beef production states. These sales have been developed primarily to market more effectively the feeder cattle produced by relatively small producers. Historically, the small feeder cattle producers have found themselves in a difficult market position because individually they lack sufficient volumes of uniform cattle to attract buyers to their farms. Their only market alternatives were local slaughter auctions or country buyers. As a result, small farm operators combined their cattle to obtain sufficient volumes to attract buyers. This was done under the assumption that cattle of varying grades, weights, and breeds were differentiated products in the minds of the buyers when available in sufficient quantities. The purpose of this study was to analyze empirical data to identify and, when possible, to quantify the effect that specific economic factors have on the performance of feeder cattle auction sales. It has previously been shown that larger lot sizes and uniform cattle by grades, sex, and breed were significant factors in feeder cattle buyer decisions [1, p. 98]. It was also reported that the size of sale lot was important to the buyers of feeder cattle. It should therefore be recognized that, with variability in the feeder cattle that can be offered for sale, the quality of the lot is a major element in the buyer's decision to purchase feeder cattle and the price he is willing to pay. Hence, it is essential that producers and marketing agencies recognize the importance of this variability and understand how they can merchandise feeder cattle to sell to their advantage.