The number of slaughter-ready cattle the “average” feedlot sold to packers in May continued to rise after making an earlier-than-normal seasonal low in March, Kansas State Extension survey data showed.
The data is gathered by the KSU Extension service from selected-representative feedlots across Kansas. It is then sent to the Livestock Marketing Information Center in Denver for compilation into that “average” Kansas feedlot and published on the LMIC website.
MARKETINGS ABOVE 2021, BELOW AVERAGE
The average Kansas feedlot sold 3,797 head of fed cattle to packers in May, an action known as marketing, with the cattle known as closeouts since they are closed out of the feedlots’ books. This was up 633, or 20.0%, from April’s 3,164 head and up 285, or 8.12%, from last year’s 3,512. However, it remained 776 head, or 17.0%, less than the 2015-20 average of 4,573 head.
There is a strong seasonal trend for Kansas feedlots to close out more cattle in June than in May. June closeouts average 16.4% higher than May’s.
July and August closeouts can be somewhat variable, compared with their previous months but usually are some of the largest of the year, eclipsed only by December’s.
Seasonally, March’s closeout low was a month early, and it was so pronounced that it could be the lowest of the year, an analyst said.
DAYS ON FEED BELOW 2021, ABOVE AVERAGE
The average number of days May closeouts spent on feed remained above the 2015-2020 average but also held at fewer than last year.
Fed steers marketed to packers in May averaged 191 days on feed, the data showed, down two, or 1.04%, from 193 for those sold in April and down 15, or 7.28%, from 206 for May 2021 but up 12.2, or 6.82%, from the previous five-year average of 178.8.
Last year’s monthly days-on-feed high for Kansas feedlots was in May where there was a pronounced peak on the graph between April and June. May also marked the 2021 high month.
If the five-year average is any indication, days on feed for fed cattle should decline into a low in October, although it occurred in September last year.
FINAL WEIGHTS RISE
Kansas feedlot fed steer exit weights in May, at 1,422 pounds, were up seasonally but rose nine pounds, or 0.64%, above 2021’s 1,413 and remained 38.2 pounds, or 2.76%, above the previous five-year average of 1,383.8 pounds.
It looks like exit weights will remain higher than the 2015-2020 average for the rest of the year, the analyst said. However, final weights could wobble around last year’s totals.
Last year’s August and September drop below average stands out on a graph and likely were an anomaly, he said.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $138.26 to $147.01 per cwt, compared with last week’s range of $138.00 to $151.00. FOB dressed steers, and heifers went for $218.24 to $222.06 per cwt, versus $217.54 to $229.38.
The USDA choice cutout Wednesday was up $3.39 per cwt at $268.05, while select was up $3.06 at $242.93. The choice/select spread widened to $25.12 from $24.79 with 98 loads of fabricated product and 23 loads of trimmings and grinds sold into the spot market.
The USDA said basis bids for corn from feeders in the Southern Plains were at $2.65 to $2.85 a bushel over the Sep futures and for southwest Kansas were steady at $0.10 under Sep, which settled at $5.99 3/4, up $0.07 1/2.
The CME Feeder Cattle Index for the seven days ended Tuesday was $165.08 per cwt up $0.11. This compares with Wednesday’s Aug contract settlement of $173.30, up $0.60.