Average June Kansas Feedlot Steer Sales Rise Seasonally

Sales of slaughter-ready steers from Kansas feedlots in June rose seasonally and as of June 30 were very near the 2017-2021 average and last year.

Data comes from a monthly Kansas State University Extension Service survey of select feedlots around the state.  The information on monthly feedlot activities is given to the Livestock Marketing Information Center in Denver, which compiles the data to create an “average” feedlot and its activities.  The results are then published on the LMIC website.

 

JUNE CLOSEOUTS NEAR AVERAGE, 2022

 

The number of fed steers that average feedlot sold to beef packers in June totaled 4,987 head, up 1,501, or 43.1%, from May’s 3,486, up 20, or 0.40%, from last year’s 4,967, but down 49, or 0.97%, from the previous five-year average of 5,036, the data showed.

Graphed, the data showed that Kansas feedlot steer closeouts this year are tracking closely with the 2017-2021 average, although they have been a little lower in all months except February and June.

The trend is for steer closeouts to keep working higher through August before falling away to the October low.  Last year, July’s closeouts displayed an uncharacteristic dip before rebounding to rejoin the average in August.

Heifer closeouts from the “average” Kansas feedlot in June totaled 2,968 head, up 333, or 12.6%, from May’s 2,635, down 706, or 19.2%, from last year’s 3,674 and down 804, or 21.3%, from the previous five-year average of 3,772.

Heifer closeouts this year have tracked less than the average in all months except March.  Through March, however, monthly heifer closeouts were rising but were less than the average.  Since March, the trend has followed the five-year average but at a lower level.

 

EXIT WEIGHTS ABOVE AVERAGE

 

Feedlot exit weights for steers in June remained higher than the 2017-2021 average, although they were less than June 2022.

The average steer leaving a Kansas feedlot in June weighed 1,410 pounds, up 10, or 0.7%, from 1,400 in May, down six, or 0.42%, from 1,416 last year, but up 21.2, or 1.53%, from the previous five-year average’s 1,388.8 pounds.

The average heifer leaving Kansas feedlots in June weighed 1,303 pounds, up 27, or 2.12%, from 1,276 in May, up 11, or 0.85%, from 1,292 a year earlier and up 55.2, or 4.42%, from the previous five-year average of 1,247.8 pounds.

Heifer weights did not follow the average down in April, moving slightly higher instead.  It’s almost as if they took the May increase a month early, since May weights declined as the average shows they do in June.

However, heifer weights jumped in June, surpassing last year’s.

 

CATTLE, BEEF RECAP

 

The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $182.49 per cwt to $183.76, compared with last week’s range of $174.90 to $189.24 per cwt.  FOB dressed steers, and heifers went for $288.73 per cwt to $289.65, compared with $283.11 to $292.33.

The USDA choice cutout Monday was down $0.30 per cwt at $301.49 while select was off $1.47 at $275.01.  The choice/select spread widened to $26.48 from $25.31 with 72 loads of fabricated product and 20 loads of trimmings and grinds sold into the spot market.

The USDA said basis bids for corn from feeders in the Southern Plains were steady at $1.85 to $2.05 a bushel over the Sep corn contract, which settled at $4.82 1/4 a bushel, down $0.02.

No contracts were tendered for delivery against the Aug cattle contract Monday.

The CME Feeder Cattle Index for the seven days ended Friday was $245.20 per cwt, down $0.64.  This compares with Monday’s Aug contract settlement of $246.97 per cwt, down $2.55.