Kansas feedlots finished 2024 monthly sales to beef packers on a strong note, surpassing 2023’s sales but falling a little short of the 2018-2022 average pace.
The data came from data collected by the Kansas State University Extension service from select feedlots across the state and compiled and published by the Livestock Marketing Information Center in Denver to obtain the activity of the “average” feedlot for the month.
STEER CLOSEOUTS RISE FROM ANNUAL LOW
Sales of steers, or closeouts, from the average Kansas feedlot in December numbered 4,606 head. This was up 1,488, or 47.7%, from the 2023 monthly low of 3,118 in November, up 440, or 10.6%, from 4,166 in December 2023 but down 142, or 2.99%, from the previous five-year average of 4,748.
It is normal for December steer closeouts from Kansas feedlots to jump sharply from November’s pace, which often is the annual low month. The annual high in closeouts comes in August.
From December, steer closeouts from the average Kansas feedlot rise again in January, whereupon they fall into a seasonal low in April. May begins an uneven rise to the annual mid-summer high.
Last year’s action followed the trend except that the annual high was in January followed by a secondary high in July.
HEIFER CLOSEOUTS ALSO UP FROM ANNUAL LOW
December heifer closeouts from the average Kansas feedlot totaled 2,179 head, up 238, or 12.3%, from November’s annual low of 1,941 but 463, or 17.5%, less than 2023’s 2,642 and down 1,454, or 40.0%, from the 2018-2022 average of 3,633 head.
The monthly pace of heifer closeouts from the average Kansas feed yard varies much more than it does for steers, undulating with less seasonality. The annual high month tends to be November, but December, January and July aren’t far behind.
Last year, the annual high months came in February and July but in 2023, the annual high rate of monthly closeouts came in August.
STEER FINAL WEIGHTS RISE
The final weight of steers from the average Kansas feedlot in December rose to an annual high, culminating a trend of weights being heavier than either the previous year or the previous five-year average that began in March.
December’s average steer weight in December was 1,514 pounds, up 13, or 0.87%, from 1,501 in November, up 18, or 1.20%, from 1,496 in December 2023 and up 61, or 4.20%, from the 2018-2022 average of 1,453 pounds.
Final steer weights tend to decline into an April low before rising into the annual November high. Last year, they bottomed in April and peaked in December.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $206.00 per cwt to $209.32, compared with last week’s range of $204.48 to $210.94 per cwt. FOB dressed steers, and heifers went for $325.23 per cwt to $327.97, compared with $320.86 to $336.40.
The USDA choice cutout Wednesday was down $3.20 per cwt at $319.26 while select was off $3.07 at $309.14. The choice/select spread narrowed to $10.12 from $10.25 with 149 loads of fabricated product and 28 loads of trimmings and grinds sold into the spot market.
The USDA-listed weighted average wholesale price for fresh 90% lean beef was $372.19 per cwt, and 50% beef was $108.91.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.17 to $1.30 a bushel over the Mar corn contract, which settled at $4.90 1/4, up $0.06 1/4.
The CME Feeder Cattle Index for the seven days ended Tuesday was $275.73 per cwt, down $0.12. This compares with Wednesday’s Mar contract settlement of $264.97, up $0.20.