Kansas feedlot sales to beef packers, or closeouts, averaged 4,113 head in July, falling below last year and the 2016-2020 average, according to a survey by the Kansas State University Extension service.
The monthly survey collects data from select feedlots and sends the results to the Livestock Marketing Information Center in Denver for compilation and publishing on the LMIC website.
JULY CLOSEOUTS DOWN
July’s average Kansas feed yard closeouts of 4,113 head were down 854, or 17.2%, from June’s 4,967-head average and down 1,577, or 27.7%, from last year’s 5,690 head. They also were down 906, or 18.1%, from the 2016-20 average of 5,019 head.
Kansas feedlot closeouts have run at lower-than-average since March and may remain below average for the rest of the year. July’s downturn in closeouts was steeper than usual and may not allow the numbers to rise above average or last year before the end of the year.
FINAL WEIGHTS ABOVE AVERAGE
The average final weight of the steers exiting Kansas feedlots in July remained higher than the 2016-20 average but continued to run less than last year. However, last year’s feedlot closeout schedule was interrupted by COVID issues, which minimizes its reliability in comparison to current activity, a market analyst said.
The average weight of cattle headed to their date with destiny at the packing plant in July was 1,412 pounds, down four, or 0.28%, from June’s 1,416 pounds and down 41, or 2.82%, from last year’s 1,453 pounds. But it was nine pounds, or 0.64%, more than the previous five-year average of 1,403 pounds.
At its present trajectory, final weights of steers leaving the feedlot will have dipped below the 2016-20 average in August. However, the average trend is to move up.
DAYS ON FEED ABOVE AVERAGE
The average number of days steers exiting Kansas feedlots in July were on feed before being shipped to packers for slaughter and processing declined two days, or 1.08%, to 183 from June’s 185 but remained five days, or 2.81%, above last year’s 178. It also was up 9.6 days, or 5.54%, from the 2016-20 average of 173.4.
Going forward, the average number of days steers will spend in Kansas feedlots will decline seasonally to a September or October low in the upper 150s before finishing out the year in the upper 160s.
The monthly number crossed over last year’s average in July but may not drop below it until the late-year bounce from the bottom in October or November.
Average daily gain of cattle exiting Kansas lots in July was 3.46 pounds, down from June’s 3.48 pounds, last year’s 3.65 pounds and the 2016-20 average of 3.572 pounds.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $142.00 to $147.86 per cwt, compared with last week’s range of $141.00 to $145.00 FOB dressed steers, and heifers went for $222.00 to $227.22 per cwt, versus $221.34 to $227.23.
The USDA choice cutout Monday was down $0.79 per cwt at $247.84 while select was up $4.04 at $223.35. The choice/select spread narrowed to $24.49 from $29.32 with 82 loads of fabricated product and 28 loads of trimmings and grinds sold into the spot market.
The USDA said basis bids for corn from feeders in the Southern Plains were down $0.35 to $0.55 at $2.610 to $2.45 a bushel over the Dec futures and for southwest Kansas were steady at $1.00 over Dec, which settled at $6.66 1/4, down $0.10 1/2.
The CME Feeder Cattle Index for the seven days ended Friday was $178.71 per cwt down $1.44. This compares with Monday’s Sep contract settlement of $176.87, down $1.25, and Oct’s $177.07, down $1.27.