February Kansas feedlot closeouts followed the 2015-2019 average decline from January closely, undercutting the year-earlier rate, according to data collected by the Kansas State University Extension Service and compiled by the Livestock Marketing Information Center in Denver.
The K-State Extension Service collects the data from select, representative feedlots across the state each month, and the LMIC extrapolates the data to obtain a likeness of the activity at an “average” feed yard in the state. The data then is compiled into graphs and published on the LMIC website.
CLOSEOUTS NEAR AVERAGE
Despite the severe cold in February and the backup in fed cattle marketings it produced, the average head sold to packers during February was not far above the five-year average.
The number of head marketed by the average feedlot in Kansas during the month was 3,918, down 365, or 8.5%, from last year’s 4,283 but 115, or 3.02%, more than the previous five-year average of 3,803.
It is normal for Kansas feedlot closeouts to decline in February, just as it is normal for sales to beef packers to climb in March. If the market behaves like the 2015-2019 average, feedlot marketings will rise to a seasonal peak in June followed by an uneven decline to a seasonal low in September or October. The annual high often happens in December.
Last year was such an unusual year because of the pandemic, comparisons may not be entirely valid, an analyst said. But aside from the annual low in closeouts coming in April and a challenge in November, it wasn’t a lot different than the five-year average.
FINAL WEIGHTS ABOVE 2020, AVERAGE
The weights of cattle coming out of Kansas feedlots in February declined from January but remained above last year and the previous five-year average.
The average feedlot marketed cattle weighing an average of 1,492 pounds, down 23, or 1.57%, from 1,469 in January but up 48, or 3.32%, from 1,444 a year earlier and up 92, or 6.57%, from the 2015-2019 average of 1,400 pounds.
According to the 2015-2019 average of monthly marketing weights, they will decline to an April annual low and begin to climb again to a November high. Last year, there was an unusual high in August that wasn’t surpassed until a December high of 1,439 pound.
In an unusual move, February’s closeouts took less time on feed to reach slaughter weight than they did last year or in the previous five-year average. They even declined when they usually go up.
CATTLE, BEEF RECAP
Light fed cattle traded this week at mostly $121 per cwt on a live basis, with one bunch reported at $121.51, basically up $1 to down $2 from last week. Dressed-basis trading last week was at $195 to $196 per cwt, up $6 to $11.
The USDA choice cutout Wednesday was up $2.80 per cwt at $272.91, while select was up $0.77 at $267.31. The choice/select spread widened to $5.60 from $3.57 with 72 loads of fabricated product and 36 loads of trimmings and grinds sold into the spot market.
The USDA reported Wednesday that basis bids for corn from livestock feeding operations in the Southern Plains were unchanged at $1.15 to $1.20 a bushel over the May CBOT futures contract, which settled at $5.94 a bushel, up $0.14.
There were no delivery intentions posted against the Apr live cattle futures contract Wednesday. None were retendered, and none were demanded or reclaimed.
The CME Feeder Cattle Index for the seven days ended Tuesday was $143.56 per cwt down $0.10. This compares with Wednesday’s Apr contract settlement of $141.15 per cwt, down $1.30.