The number of fed cattle sold to beef packers from an average Kansas feedlot in September declined seasonally from what may be the annual high in August.
The data came from a monthly Kansas State University survey of select Kansas feed yards. This data then was extrapolated and published by the Livestock Marketing Information Center in Denver.
The data showed that the hypothetical average feedlot in Kansas sold 4,945 head of cattle to packers in September, down 594, or 10.7%, from August’s 2020 high so far of 5,539 head. September’s sales also were up 1,418 head, or 40.2%, from the 2019 September total of 3,527 head and up 1,062, or 27.3%, from the 2014-2018 average of 3,883.
Normally, the annual high in Kansas feedlot sales to packers, or closeouts, comes in December, but it occurred in August last year, and this year’s August sales of 5,539 head were very close to last year’s 5,500 and both exceeded the 2014-2018 average December high of 5,325 head.
The normal seasonal low in Kansas feedlot closeouts of fed cattle takes place in October, and this is where it occurred last year as well. The annual low closeout point often occurs in February but last year took place in March and this year appears to have taken place in April.
SALES WEIGHT DROPS UNSEASONALLY
Along with the decline in closeout numbers in September the average weight of the average steer sold to packers during the month declined as well, the data showed.
The average steer closeout weight for the month was 1,442 pounds, down 26, or 1.77%, from 1,468 in August. The September closeout weight, however, was up 52 pounds, or 3.74%, from last year’s 1,390 pounds and up 20, or 1.41%, from the 2014-2018 average of 1,422 pounds.
September’s closeout weight drop actually was counter to the 2014-2018 average, but not to last year’s move. However, in both cases, the trend in October and November was up. December’s closeout weights can vary.
Closeout weights of steers from Kansas feedlots this year have been well above last year and the previous five-year average in every month and could remain higher through December.
DAYS ON FEED DECLINES
The number of days it took those steers to reach slaughter weight in Kansas continued to decline. The steers sold to packers in September took 175 days to reach market weight, down eight, or 4.37%, from 183 in August but up one, or 0.57%, from 174 a year ago and up 12.2, or 7.49%, from the 2014-2018 average of 162.8.
Kansas days on feed usually decline into October and bounce for November. In December, it can go either way.
CATTLE, BEEF RECAP
Fed cattle trading was done last week at $106 to $107.25 per cwt on a live basis, up $0.75 to $3 from the previous week. Dressed-basis trading was done at $160 to $167 per cwt, steady to up $5.
The USDA choice cutout Monday was up $3.07 per cwt at $217.39, while select was up $3.88 at $202.37. The choice/select spread narrowed to $15.02 from $15.83 with 84 loads of fabricated product and 38 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 $1.10 to $1.15 per bushel over the Dec CME futures contract, which settled at $4.07 1/2 a bushel, up $0.00 3/4.
The CME Feeder Cattle Index for the seven days ended Friday was $135.58 per cwt, down $1.05. This compares with Monday’s Nov contract settlement of $141.62 per cwt, up $3.92.