April Kansas Feedlot Closeouts Descend

Kansas feedlot sales to packers declined in April to a possible seasonal low, according to data from a Kansas State University monthly survey.

The data is collected by the KSU Extension Service from select feedlots around the state of varying size and location.  They then are compiled to form a theoretical average feedlot’s activity and published by the Livestock Marketing Information Center in Denver on its website.

 

CLOSEOUTS DECLINE

 

The number of cattle the “average” Kansas feedlot sold to packers, or closed out of the feedlot’s inventory, in April was 3,084 head, down 624, or 16.8%, from March’s 3,708 head.  April’s closeouts also were down 80 head, or 2.53%, from April 2022’s 3,164 head and down 461, or 13.0%, from the 2017-2021 average of 3,545 head.

April’s downturn in Kansas feedlot closeouts was seasonal and could represent the second lowest point in the year.  The 2017-2021 average shows October as the only month with fewer.

Last year, the spring low in Kansas feedlot closeouts came in March but showed average movement in May and June.  The only anomaly in direction for the rest of the year was in July when closeouts declined.  But they went up again in August to join the five-year average before falling seasonally to the October, although September and October closeouts were unseasonably low.

If Kansas feedlot closeouts follow the five-year average trend, they should peak in August before declining to the October low.

 

FINAL WEIGHTS ABOVE 2022, AVERAGE

 

The final weight of the “average” steer exiting the “average” Kansas feedlot in April held nearly steady from March but was heavier than April 2022 and the 2017-2021 average.

The data showed that steer weighed 1,406 pounds, compared with 1,404 in March but was 17 pounds, or 1.22%, more than the 1,389 pounds of a year ago and 35.8 pounds, or 2.61%, more than the previous five-year average of 1,370.2 pounds.

Data show the lowest weight month of the year usually comes in April.  From there, weights climb unevenly into December followed by a drop in January that bottoms the following April.

 

DAYS ON FEED DROP UNSEASONABLY

 

The average number of days April closeouts spent on feed was 190, down seven, or 3.55%, from 197 in March and down three, or 1.55%, from 193 a year ago but up 5.6, or 3.04%, from the 2017-2021 average of 184.4.

The downturn came early in the year, opening the way for an increase, but the average peak in days on feed for any month’s Kansas feedlot closeouts comes in May, so the March peak may be the annual high.  From the annual high, days on feed decline to an October annual low.

 

CATTLE, BEEF RECAP

 

The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $179.66 per cwt to $188.00, compared with last week’s range of $171.68 to $183.03 per cwt.  FOB dressed steers, and heifers went for $269.90 per cwt to $286.90, compared with $267.34 to $280.26.

The USDA choice cutout Wednesday was up $3.79 per cwt at $325.19 while select was up $2.12 at $301.56.  The choice/select spread widened to $23.63 from $21.96 with 89 loads of fabricated product and 30 loads of trimmings and grinds sold into the spot market.

The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.65 to $1.75 a bushel over the Jul corn contract, which settled at $6.04 1/4 a bushel, down $0.03 3/4.

No deliveries were tendered against Jun live cattle Wednesday.

The CME Feeder Cattle Index for the seven days ended Tuesday was $219.28 per cwt, up $0.63.  This compares with Wednesday’s Aug contract settlement of $239.10 per cwt, down $4.15.