September sales to packers, or closeouts, from the “average” Kansas feedlot in September rose from August, according to data gathered by the Kansas State University Extension Service and compiled and published by the Livestock Marketing Information Center in Denver.
However, September feedlot closeouts were close to last year and within striking distance of the 2019-2023 average.
The K-State Extension Service surveys select feedlots around Kansas each month and collects data on a variety of factors including closeouts and turns it over to the LMIC, which compiles it to ascertain the activity of a statistically “average” Kansas feedlot and then publishes the graphs on its website.
SEPTEMBER STEER CLOSEOUTS RISE
September steer closeouts from that “average” Kansas feedlot were 4,465 head, up 203, or 4.76%, from 4,262 in August, up 25, or 0.56%, from 4,440 a year ago and up 435, or 10.8%, from the previous five-year average of 4,030.
September’s uptick was counter-seasonal, but August’s feedlot closeouts were lower than either last year or the 2019-2023 average. Plus, August tends to be the most active month for closeouts from the “average” Kansas feedlot.
The USDA did not issue a monthly Cattle on Feed report in October to get a comparison to the US as a whole. But Reuters reported the USDA plans to issue a COF report on schedule on Nov. 21.
Going forward, Kansas feedlot closeouts are likely to decline into the October low or November like it did last year. Then there is an uptick in marketings through January.
Heifer closeouts rose in September, a move that countered the average and last year. The average feedlot sold 3,811 head in the month, up 284, or 8.05%, from 3,527 in August, up 930, or 32.3%, from 2,881 a year ago and up 822, or 27.5%, from the average of 2,989.
FINAL WEIGHTS KEEP CLIMBING
The weight of the average steer coming out of the average Kansas feedlot in September rose from August, keeping a tend going that began in July. Exit weights of steers out of the average Kansas feedlot have remained higher than either last year or the previous five-year average all year.
The data showed the average exit weight of those steers to b 1,532 pounds, up 24, or 1.59%, from 1,508 in August, up 40, or 2.68%, from 1,492 a year ago and up 112, or 7.89%, from the average of 1,420.
If Kansas feedlots follow an average path, steer exit weights should continue rising through the end of the year with one month of decline in between. The average month for this decline is September, but last year it was in November.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $235.10 per cwt to $235.12, compared with last week’s range of $236.75 to $249.43 per cwt. FOB dressed steers and heifers went for $368.31 per cwt to $370.78, compared with $373.28 to $378.93.
The USDA choice cutout Monday was up $1.12 per cwt at $379.25 while select was up $1.28 at $359.93. The choice/select spread narrowed to $19.32 from $19.48 with 55 loads of fabricated product and 22 loads of trimmings and grinds sold into the spot market.
The USDA-listed the weighted average wholesale price for fresh 90% lean beef as $405.68 per cwt, and 50% beef was $157.04.
The USDA said basis bids for corn from feeders in the Southern Plains were up $0.10 at $1.05 to $1.20 a bushel over the Dec corn contract, which settled at $4.34.1/4, up $0.02 3/4.
The CME Feeder Cattle Index for the seven days ended Friday was $343.33 per cwt, down $3.92. This compares with Monday’s Nov contract settlement of $342.57, up $3.70.