Kansas feedlot closeouts, or sales of slaughter-ready cattle to packer buyers, continued to decline in October, but the rate of monthly decline leveled somewhat.
The Livestock Marketing Information Center released its findings after extrapolating and compiling the data collected by the Kansas State University Extension service gathered from select feedlots around the state.
The average number of fed cattle marketed, or sold to packer buyers by Kansas feedlots in October is 3,640, the LMIC said. This is down 140, or 3.70%, from September’s 3,780 head.
However, October’s marketing rate was 497, or 15.8%, above October 2017’s rate of 3,143 head, but it was 238, or 6.14%, below the 2012-2016 average of 3,878.
October’s decline in its feedlot marketings rate extends a general decline that began in July after peaking in June at 6,673 head.
If the trend follows the 2012-2016 average, it will decline in November before bouncing again in December, although last year, the end-of-the-year bounce began in November.
FINAL WEIGHTS DIP FROM 2018 TOP
Closeout weights from Kansas feedlots, declined in October to 1,418 pounds, dipping five pounds, or 0.35%, below this year’s peak so far, which came in September at 1,423 pounds.
October’s sales weight was six pounds, or 0.42%, above the October 2017 rate of 1,412 but 5 pounds, or 0.35%, below the previous five-year average of 1,423 pounds.
Average monthly slaughter weights from Kansas feedlots have tracked the 2012-2016 average closely since August. If the trend continues, they will be near 1,423 pounds in November and near 1,420 in December.
DAYS ON FEED UP
But it took longer for calves to reach slaughter weight, as the number of days it took to reach market weight in October was up from the 2012-2016 average.
It’s difficult to draw conclusions from comparisons to 2017 since days on feed have bounced around a lot in both years. In fact, it appears that the K-State survey either received incomplete data or in accurate data for October a year ago, and again in May of this year.
The average number of days feeder cattle were munching on Kansas feedlot rations before being marketed in October was 169, up 27, or 19.0%, from 142 in the same month a year ago and up 17, or 11.2%, from the previous five-year average of 152.
The average daily gain for cattle sold to packers from Kansas feedlots in October remained below last year and the 2012-2016 average at 3.61, steady with September but 0.2, or 5.25%, below October 2017’s 3.81 and 0.14 day, or 3.73%, below the previous five-year average of 3.75.
However, feeding costs, at $79.95 per cwt, were down from the average of $95.11 for the Kansas feedlots but above last year’s $75.76.
CATTLE, BEEF RECAP
A total of 97 head of fed cattle sold last Wednesday at the Fed Cattle Exchange video auction at an average price of $119 per cwt, up $1.17 from a week earlier.
Cash cattle traded last week at $118 to mostly $119 per cwt, steady with the previous week. Dressed-basis trade was at $187 to mostly $188 per cwt, steady to up $1.
The USDA choice cutout Tuesday was up $0.01 per cwt at $212.68, while select was up $0.97 at $204.73. The choice/select spread narrowed to $7.95 from $8.91 with 76 loads of fabricated product sold into the spot market.
No delivery notices were served for Dec live cattle.
The CME Feeder Cattle index for the seven days ended Monday, was $145.55 per cwt, down $0.65. This compares with Tuesday’s Jan settlement of $146.20, up $0.82.