A big game of chicken is being played in the beef industry for high 'steaks'. (pun very much intended)

Its a battle between the cattle feeders and the packers with each hoping to get the prices they need to lessen their losses.

That according to USDA Livestock Analyst, Shayle Shagam, who says both sides are losing money; feeders, because short cattle supplies are running up prices for animals going into feed lots, packers, because prices for feed cattle are shooting up.

Both sides, Shagam says, are holding back, "So what you see over a week is light trade in cattle during the early part of the week. Each side looks at the other side and tries not to bid too much and tries not to accept those low bids and then you see the trade move much more strongly at the end of the week."

He suggests this game of chicken could go on for awhile with a six percent decline, last month, in cattle entering feed lots over last year.