Kansas feedlot sales to beef packers in August declined unseasonably from an unusually high rate in July, according to data gathered by the Kansas State University Extension Service.
The data from select feedlots around Kansas is compiled and published by the Livestock Marketing Information Service in Denver. The resulting information is a calculated average for an “average” feedlot in the state.
At the same time, the final weight of fed steers exiting Kansas feedlots dropped sharply, an uncharacteristic move for the month and one that happened in September last year, the data showed.
AUGUST MARKETINGS DOWN
Sales to beef packers, known as marketings, from the average Kansas feedlot in August came to 5,460 head, down 230, or 4.04%, from this year’s high so far in July of 5,690. It also was down 79, or 1.43%, from 5,539 head in August 2020 but up 343, or 6.70%, from the 2015-2019 average of 5,117.
On average, the monthly high in Kansas feedlot marketings comes in December at about 5,520 head, but last year, it was in September at 4,945 head.
Last year’s monthly marketings numbers showed two uncharacteristic lows: one in April at 2,806 head and the other in November at 2,814 head. The annual high last year came in August.
If monthly marketings continue at a seasonal rate, they will decline again in September, be relatively steady in October but rise in November and rise sharply in December.
CLOSEOUT WEIGHTS DROP
But August’s higher marketings rate came at a price – lower final, or closeout, weights, the data showed.
The closeout rate of the “average” Kansas steer in August was 1,415 pounds, down 38, or 2.62%, from July’s 1,453 and down 53, or 3.61%, from last year’s 1,468 pounds. The August closeout weight was up eight pounds, or 0.57%, from the 2015-2019 average of 1,407 pounds.
On average, Kansas feedlot closeouts rise from the annual low in April at about 1,363 pounds and peak in November at about 1,448 pounds. Last year, the low came in April at 1,402 pounds, showed a secondary peak in August of 1,468 pounds and an annual high in November of 1,448 pounds.
DAYS ON FEED MIXED
The number of days steers marketed from Kansas feedlots in August spent on feed came to 173, the data showed, down five, or 2.81%, from 178 in July, down 10, or 5.46%, from 183 last year but up seven, or 4.22%, from the previous five-year average of 166.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $124.35 to $124.69 per cwt, compared with the previous week’s range of $123.39 to $125.00. FOB dressed steers and heifers went for $195.21 to $196.04 per cwt, versus $193.61 to $196.03.
The USDA choice cutout Monday was down $2.15 per cwt at $281.12, while select was up $0.90 at $263.64. The choice/select spread narrowed to $17.48 from $20.53 with 85 loads of fabricated product and 23 loads of trimmings and grinds sold into the spot market.
The USDA reported Monday that basis bids for corn from livestock feeding operations in the Southern Plains were unchanged at $1.15 to $1.30 a bushel over the Dec futures and for southwest Kansas were unchanged at $0.40 over Dec, which settled at $5.33 a bushel, up $0.02 1/2.
No contracts were tendered for delivery Monday against the Oct live cattle contract.
The CME Feeder Cattle Index for the seven days ended Friday was $153.62 per cwt down $0.95. This compares with Monday’s Oct contract settlement of $159.32 per cwt, down $0.15.