Like many feedlots around the country, the average Kansas feed yard sales to packers, or closeouts, in February, dropped, according to data collected by the Kansas State University Extension service and compiled and published by the Livestock Marketing Information Center in Denver.
The data is taken from select, representative feedlots around the state and them extrapolated to give results for the “average” Kansas feedlot.
CLOSEOUTS DECLINE
The “average” Kansas feedlot in February marketed 3,715 head of slaughter-ready cattle, down 1,924, or 34.1%, from January’s 5,639, down 844, or 18.5%, from 4,559 in February 2023 and down 425, or 10.3%, from the 2018-2022 average of 4,140 head.
But as sharp as the month’s decline in feedlot closeouts was in February, it wasn’t out of character for the numbers to go down. Kansas feedlot closeouts usually decline in February from January. Last year’s increase was unusual.
There is a strong seasonal tendency for Kansas feed yard closeouts to decline through April before rising again through August.
FINAL WEIGHTS DOWN
Final weights of cattle closed out of the average Kansas feedlot’s books in February were down from January, February 2023 and the previous five-year average.
The average final weight from the average Kansas feedlot in February was 1,418 pounds, down 17, or 1.18%, from 1,435 in January, down 17, or 1.18%, from 1,435 a year earlier and down eight, or 0.56%, from the five-year average of 1,426.
February’s decline in feedlot exit weights is a normal trend. The seasonal tendency is for weights to bottom annually in April and then climb through August. A dip in September is common, but small variations in month performance also are common.
The annual high in closeout weights comes in November.
DAYS ON FEED RISE
The number of days cattle that were marketed from Kansas feedlots in February spend on feed rose. They also were up from a year earlier and the 2018-2022 average.
February closeouts spent an average of 192 days on feed, up 11, or 6.08%, from January’s 181, up two, or 1.05%, from last year’s 190 and up 19.4, or 11.2%, from the 2918-2022 average of 172.6.
Days on feed usually are about flat from January to February, although last year they started the year significantly higher than the average and went up to a March annual high of 197 days. There is a strong seasonal trend for days on feed to rise sharply for March and April closeouts.
After a rounded top in the graph of May and June closeout’s days on feed, the number declines to the October annual low.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $185.94 per cwt to $195.38, compared with last week’s range of $188.79 to $194.99 per cwt. FOB dressed steers, and heifers went for $293.28 per cwt to $299.46, compared with $294.13 to $302.18.
The USDA choice cutout Thursday was down $4.15 per cwt at $297.15 while select was off $0.87 at $296.05. The choice/select spread narrowed to $1.10 from $4.38 with 132 loads of fabricated product and 30 loads of trimmings and grinds sold into the spot market.
The daily weighted average USDA listed wholesale price for fresh 90% lean beef was $343.17 per cwt, and 50% beef was $104.46.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.40 to $1.55 a bushel over the May corn contract, which settled at $4.35 1/4 a bushel, up $0.03 1/2.
The CME Feeder Cattle Index for the seven days ended Wednesday was $249.90 per cwt, up $2.17. This compares with Thursday’s Apr contract settlement of $242.70, up $1.75.