The number of fed cattle the “average” feedlot marketed to beef packers in April rebounded from the March low but remained slightly lower than last year and significantly lower than the 2016-2020 average.
The data came from the Kansas State University Extension Service which polled a select segment of Kansas feed yards for the information, which then was turned over to the Livestock Marketing Information Center in Denver for compilation into the “average” feedlot’s activity that month.
MARKETINGS REBOUND
The average number of fed cattle the average feedlot closed out of its books, or marketed to packers, in April was 3,164 head, up 344, or 12.2%, from March’s 2,820. However, this was 108 head, or 3.30%, less than last year’s 3,272 head and 799, or 20.2%, less than the previous five-year average’s 3,963 head.
Monthly closeouts from Kansas feedlots usually rise in March and decline in April, but this year, they dropped in March and rebounded in April. March’s drop merely continued the sharp decline shown in January and February.
However, that decline into March’s low was so pronounced that even April’s gain wasn’t enough to allow the April rebound to catch up to last year or the five-year average.
If May closeouts follow the 2016-2020 trend, they will rise and continue to gain through June. This will be followed by a small dip in July and another gain in August.
EXIT WEIGHTS DECLINE, FOLLOW TREND
But while closeouts went up in April, the average weight of the cattle bound for the packing plant declined seasonally, the data showed.
The average weight of fed steers exiting Kansas feedlots in April was 1,389 pounds, down 28, or 1.98%, from 1,417 in March. April’s final weight also was eight pounds, or 0.57%, less than last year’s 1,397 pounds but up 20.6 pounds, or 1.51%, from the 2016-2020 average of 1,368.4 pounds.
The drop in body weight for steers exiting Kansas feedlots in April was typical since weights often decline from January into April’s annual low. From there, weights generally climb unevenly into the November high.
Last year, exit weights followed the trend, albeit at a higher level, through July. From there, they dropped through August and September, falling below the 2016-2020 average, only to rebound in October to resume their earlier trend.
Average days on feed was up from the 2016-2020 average, continuing a trend for this year. However, days on feed, which began the year at more than the 2021 average, fell below last year’s line in March and remained sub-2021 in April.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $135.53 to $143.15 per cwt, compared with last week’s range of $138.47 to $147.00. FOB dressed steers, and heifers went for $214.69 to $216.50 per cwt, versus $216.01 to $219.32.
The USDA choice cutout Tuesday was up $1.84 per cwt at $271.42, while select was down $1.53 at $249.56. The choice/select spread widened to $21.86 from $18.49 with 117 loads of fabricated product and 20 loads of trimmings and grinds sold into the spot market.
The USDA reported that basis bids for corn from feeders in the Southern Plains were up $0.20 at $1.75 to $1.85 a bushel over the Jul futures and for southwest Kansas were steady at even the Jul, which settled at $7.57 a bushel, up $0.14 1/2.
No live cattle delivery intentions were posted Tuesday.
The CME Feeder Cattle Index for the seven days ended Monday was $158.49 per cwt up $4.24. This compares with Tuesday’s Aug contract settlement of $172.45, up $0.47.