Kansas feedlots in August continued July’s month-over-month trend toward selling fewer cattle to packer buyers, bringing the number back in line with last year’s August pace.
Data is drawn from selected feedlots each month by the Kansas State University Extension Service and then compiled and extrapolated by the Livestock Marketing Information Center in Denver, CO. The results are published monthly by the LMIC on its website.
The data show that Kansas feedlots sold an average of 4,975 head of slaughter-ready cattle to packer buyers in August, down 772, or 13.4%, from July’s pace of 5,747 head. The August rate also was down 1,698, or 25.4%, from this year’s peak month of June in which Kansas feedlots sold an average of 6,673 head to packer buyers.
August’s sales pace was only slightly below the August 2017 pace of 4,993 head (18 head, or 0.36%) but remained well above the previous five-year average August pace of 3,945 head (1,030 head, or 26.1%).
It might be said that June’s feedlot closeout rate was an anomaly resulting from heavy feedlot placement rates in the previous fall and winter, an analyst said. Whatever the cause for June’s active sales pace, August marked a return to a level that more closely follows the 2017 pace.
Compared with the national numbers as reported in the USDA’s monthly Cattle on Feed report, August sales by Kansas feedlots fell right in line. The national number of cattle sold to packer buyers in August was 1.983 million head, only slightly larger than the 2017 pace of 1.979 million head.
FINAL WEIGHTS IN LINE WITH AVERAGE
But while the numbers sold to packer buyers in August were down from June and July, cattle weights as they exited the feedlots were up from last year but a little below the 2012-2016 average.
Data show that the average weight of steers going to slaughter in August was 1,405 pounds, up 39, or 2.86%, from July’s 1,366 pounds. The August average was 26 pounds, or 1.89%, above the August final weight of 1,379 pounds but seven pounds, or 0.50%, below the previous five-year average of 1,412 pounds.
DAYS ON FEED NEAR 2017
Time spent on feed for Kansas’ August feedlot closeouts were only a little above last year’s 169 days at 171 days, the data showed, up only two days, or 1.17%. However, they were up 17.8, or 11.6%, from the 2012-2016 average of 153.2 days.
CATTLE, BEEF RECAP
Light cash cattle trading was reported in the Plains at $174 per cwt on a dressed basis, steady with the upper end of last week’s range.
Cattle sales last week were reported at $110 to $111 per cwt on a live basis, steady to $1 lower than the previous week. Dressed sales were reported at $173 to $174 per cwt, steady to down $1.
The USDA choice cutout Tuesday was down $0.19 per cwt at $204.61, while select was up $0.66 at $192.55. The choice/select spread narrowed to $12.91 from $12.91 with 97 loads of fabricated product sold into the spot market.
There were 11 steer delivery notices Tuesday and no heifers at zero. There also were eight steer retenders at one and six at two. Eight steers were demanded at one and six at two.
The CME Feeder Cattle index for the seven days ended Monday, was $155.36 per cwt, down $0.90. This compares with Tuesday’s Oct settlement of $154.02, down $1.07.