A large weekend winter storm stressed Plains states cattle, said Derrell Peel, Oklahoma State University Extension Livestock Marketing Specialist, in a letter to Extension Agents called Cow/Calf Corner.
Fluctuating temperatures and cold, wet conditions stress cattle, particularly weaning calves, stockers and feedlot cattle, Peel said. The challenges for feedlot cattle followed excellent feeding conditions for much of the year.
Kansas Focus on Feedlots data shows feedlot average daily gains have been above year-ago levels all year with improved feed conversions, Peel said, pulling the cost of gain below a year ago.
Excellent feedlot performance then contributed to heavy cattle weights, he said. The latest weekly data on steer carcass weights are at 928 pounds, up 27 year over year. Heifer carcass weights, at 846 pounds, were 17 pounds heavier.
Carcass weights should reach a seasonal peak in late October or early November and may match or exceed previous record levels, Peel said. Steer carcass weights reached a record 930 pounds the week of Oct. 17, 2015, and year-to-date averages are well above the 2015 record and no doubt will set a new record in 2020 above 900 pounds.
FEEDLOTS BUILD INVENTORY
Feedlots built inventories in September leading to a record population total for Oct. 1, according to the USDA Cattle on Feed report. September placements were 105.9% of last year, larger than expected and higher year over year for a third straight month.
September feedlot marketings were 106.2% of last year, slightly larger than expected, he said. There was one more business day in September so average daily marketings were about 1% above last year.
The Oct. 1 feedlot total was 11.72 million head, 103.8% of last year and a record large October total for the data series back to 1996.
July through September feedlot placements were up 8.5% year over year, Peel said. In Kansas, placements were up 17.0% for the period, leading to an Oct. 1 inventory up 7% year over year.
Nebraska placed 14.5% more cattle the past three months bringing the state inventory up 6%, compared with Oct. 1 2019.
Colorado placed 9.3% more cattle for the period, resulting in an Oct. 1 feedlot total up 12% year over year.
Texas placements were up 2.0% since July with an on-feed total up 3% on Oct. 1.
Iowa placed 1.9% fewer than last year in the past three months and has a feedlot inventory down 5% from one year ago.
Oklahoma placed 13.4% more in feedlots since July and has a total Oct. 1 inventory equal to last year.
CATTLE, BEEF RECAP
Fed cattle trading this week was seen at $103 to $106.25 per cwt on a live basis, down $1 to up $0.25 from last week. Dressed-basis trading was reported at $160 to $162 per cwt, down $3 to $4.
The USDA choice cutout Thursday was up $1.53 per cwt at $207.32, while select was up $1.65 at $191.23. The choice/select spread narrowed to $16.09 from $16.21 with 112 loads of fabricated product and 44 loads of trimmings and grinds sold into the spot market.
The USDA reported Thursday that basis bids for corn from livestock feeding operations in the Southern Plains were unchanged at $1.08 to $1.20 per bushel over the Dec CME futures contract, which settled at $3.98 1/2 a bushel, down $0.03.
There were no delivery notices against the Oct live cattle futures market Thursday.
The CME Feeder Cattle Index for the seven days ended Wednesday was $134.34 per cwt, up $1.02. This compares with Thursday’s Oct contract settlement of $136.45 per cwt, up $1.27 and the Nov close of $135.72, up $1.82.