After a drop in April that mimicked the 2020 April disaster, Kansas May feedlot closeouts recovered somewhat but remained well below last year and the 2015-2019 average, according to a monthly survey by the Kansas State University Extension Service.
The Extension Service surveys select, representative feedlots around the state for closeout data, and the Livestock Marketing Information Service in Denver compiles, extrapolates and publishes the data as representative of an “average” feedlot in the state for the data month.
MAY CLOSEOUTS DON’T MEASURE UP
The average Kansas feedlot sold, or closed out, 3,512 finished steers to beef packers in May, up 240, or 7.33%, from 3,272 in April but 1,145, or 24.6%, short of May 2020’s 4,657 head and 950, or 21.3%, behind the previous five-year average of 4,462 head.
Year-ago April’s drop in feedlot closeouts was attributed to many packing plants being closed or restricted by the COVID-19 pandemic. However, feedlot marketings jumped again in May last year to a level close to the five-year average where they remained until November when they dropped away again, the result of lower feedlot placements in April and May.
If Kansas feedlot steer closeouts follow the average from here on out, they will rise again into June and then hold roughly steady through August when they will drop off to a seasonal low in September. After October, closeouts will rise through November to December’s annual high.
FINAL WEIGHTS CLOSE TO 2020
The final weights of the steers marketed to packers in May was up from the April low, following the average direction but at a higher level and holding relatively close to last year.
The average weight of the average steer, sold to packers from the average Kansas feedlot in May was 1,413 pounds, up 16, or 1.15%, from April’s 1,397 but down 14, or 0.98%, from last year’s 1,427 pounds and up 39, or 2.84%, from the 2015-2019 average of 1,374 pounds.
April closeouts usually represent the low point in monthly out-weights from Kansas feedlots. From there, they rise through November, which often represents the high point in final weights from Kansas feedlots.
However, last year, December represented the high point in monthly closeout weights for the state.
DAYS ON FEED RISE ABOVE LAST YEAR
The average number of days cattle that were sold to packers in May spent in the “average” Kansas feedlot was 206, up 12, or 6.19%, from April’s 194, and up three, or 1.48%, from last year’s 203 and up 33.2, or 19.2%, from the 2015-2019 average of 172.8.
That usually declines into the October low.
CATTLE, BEEF RECAP
Fed cattle traded this week at $120 to $126.50 per cwt on a live basis, down $2 to up $1.50 from last week. Dressed-basis trading was at $198 to $203, up $1 to $6.
The USDA choice cutout Thursday was down $3.64 per cwt at $287.65, while select was off $2.34 at $266.93. The choice/select spread narrowed to $20.72 from $22.02 with 121 loads of fabricated product and 16 loads of trimmings and grinds sold into the spot market.
The USDA reported Thursday that basis bids for corn from livestock feeding operations in the Southern Plains were up $0.02 to $0.03 a bushel at $1.07 to $1.15 a bushel over the Jul futures and for southwest Kansas were unchanged at $0.70 over Jul, which settled at $7.19 3/4 a bushel, down $0.00 1/4.
The CME Feeder Cattle Index for the seven days ended Wednesday was $146.31 per cwt down $0.79. This compares with Thursday’s Aug contract settlement of $156.32 per cwt, up $1.70.