August fed steer closeouts, or sales of fed cattle to beef packers, declined counter-seasonally in August as the final weights of steers and heifers rose, according to data collected by the Kansas State University Extension service and processed by the Livestock Marketing Information Center in Denver.
The KSU Extension service collects feeding data from a select group of feedlots around the state. The data is then compiled by the LMIC to come out with performance and activity data for an “average” Kansas feedlot, which is what is published.
While no commentary is given for why August marketings declined and exit weights rose, a case could be made that declining costs had something to do with it, a market analyst said. A seasonal peak also could have been reached a month early.
STEER CLOSEOUTS DOWN
August closeouts of fed steers from the average Kansas feedlot was 4,626 head, down 283, or 5.76%, from 4,909 in July. Steer closeouts generally rise in August to the annual high month of the year.
August steer closeouts were down 339, or 6.83%, from 4,965 a year earlier and down 757, or 14.1%, from the 2018-2022 average of 5,383.
September steer marketings from the average Kansas feed yard should decline sharply from August if the seasonal trend is followed. Once peaking, steer marketings drop to the annual low in October.
But while August steer marketings were up, heifer marketings from the average Kansas feedlot declined seasonally, countering a counter-seasonal move in the 2023 month. August heifer marketings totaled 3,390 head, down from 3,678 in July and down from 4,026 last year but up from the previous five-year average of 2,873.
If the five-year trend is followed, heifer marketings will increase in September and rise to the annual high in October before more or less leveling through December. Last year, heifer marketings declined through September and October only to climb again in December before declining again in December.
FINAL WEIGHTS RISE
Exit weights of steers and heifers were up from the average Kansas feedlot in August with steers averaging 1,483 pounds, up 33, or 2.28%, from 1,450 in July, up 68, or 4.81%, from 1,415 a year ago and up 56.2, or 3.94%, from the 2018-2022 average of 1,426.8 pounds.
August heifer exit weights averaged 1,307 pounds, up four, or 0.31%, from 1,303 in July, up 342, or 2.51%, from 1,275 a year ago and up 25.8, or 2.01%, from the previous five-year average of 1,281.2 pounds.
Weights should trend upward through the year with steers possibly dipping in December.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $185.99 per cwt to $188.49, compared with last week’s range of $180.03 to $188.29 per cwt. FOB dressed steers, and heifers went for $290.85 per cwt to $294.92, compared with $288.63 to $297.87.
The USDA choice cutout Thursday was up $1.77 per cwt at $309.95 while select was up $2.10 at $290.73. The choice/select spread narrowed to $19.22 from $19.55 with 88 loads of fabricated product and 20 loads of trimmings and grinds sold into the spot market.
The USDA-listed weighted average wholesale price for fresh 90% lean beef was $351.02 per cwt, and 50% beef was $71.61.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.31 to $1.48 a bushel over the Dec corn contract, which settled at $4.18 1/2 a bushel, down $0.02 1/2.
No delivery intentions were posted Thursday for the Oct live cattle contract.
The CME Feeder Cattle Index for the seven days ended Wednesday was $249.52 per cwt, up $0.04. This compares with Thursday’s Oct contract settlement of $250.27, up $1.00.