November Kansas feedlot closeouts declined again, a move that mirrors the 2020 month, but goes contrary to the 2015-2019 average.
The data came from a monthly Kansas State University Extension Service survey of selected, representative feedlots around the state. The data is then compiled and published by the Livestock Marketing Information Center in Denver.
The data showed that the “average” Kansas feedlot sold an average of 3,831 head of slaughter-ready cattle to beef packers, or closed them out on their books, in November. This was down 214, or 5.29%, from 4,045 in October, up 1,017, or 36.1%, from 2,814 a year ago and 442, or 10.3%, fewer than the previous five-year average of 4,273.
November Kansas feedlot closeouts declined in November 2020 as well, but that year’s drop was a second bottom on monthly line graphs. The lowest number of closeouts came in April of 2020.
The 2021 closeout low also came in April but was not challenged by any other month.
FINAL WEIGHTS NEAR 2021 PEAK
The final weight of fed steers leaving Kansas feedlots in November averaged 1,469 pounds, a tie with January for the second heaviest of the year. The honor for the heaviest closeout weights was 1,470 in October.
November’s final weight of steers was up seven pounds, or 0.48%, from the 2020 month of 1,462 and up 21, or 1.45%, from the 2015-2019 average of 1,448 pounds.
The average direction for Kansas feedlot exit weights is down from November, but 2020’s weights went up. They usually decline through April as Fall’s younger placements go to slaughter.
DAYS ON FEED UP SLIGHTLY FROM OCTOBER
The number of days fed steers that were sold to packers from Kansas feedlots in November was up slightly from October. However, October’s gain appears to be a normal November gain.
Fed steers that were sold to beef packers from Kansas feedlots in November averaged 171 days on feed, compared with 170 for those sold in October, 167 for those sole in November 2020 and 167 for those in the 2015-2019 average.
Generally, the days on feed number declines about 1.5 days for those cattle sold in December. Days on feed then dips slightly in January before climbing again into an April peak.
AVERAGE DAILY GAIN RISES; NEAR AVERAGE
The average weight the November Kansas feed yard closeouts gained while on feed rose seasonally coming in at an average of 3.74 pounds a day, compared with the November 2020 daily gain of 3.88 pounds and the previous five-year average of 3.74 pounds. Average daily gain generally rises slightly in December followed by a drop in January.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $139.53 to $141.00 per cwt, compared with last week’s range of $135.00 to $143.25. FOB dressed steers and heifers went for $216.65 to $218.77 per cwt, versus $212.43 to $218.42.
The USDA choice cutout Wednesday was up $1.71 per cwt at $279.93, while select was up $2.35 at $270.98. The choice/select spread narrowed to $8.95 from $9.59 with 114 loads of fabricated product and 39 loads of trimmings and grinds sold into the spot market.
The USDA reported that basis bids for corn from feeders in the Southern Plains were unchanged at $1.45 to $1.65 a bushel over the Mar futures and for southwest Kansas were unchanged at $0.35 over Mar, which settled at $5.99 a bushel, down $0.02.
The CME Feeder Cattle Index for the seven days ended Tuesday was $162.21 per cwt down $0.03. This compares with Wednesday’s Jan contract settlement of $161.87 per cwt, down $0.20.