Kansas feedlot sales of slaughter-ready cattle in September declined seasonally, with the average less than last September and above the 2015-2019 average, according to data collected by the Kansas State University Extension service and compiled and published by the Livestock Marketing Information center in Denver.
The K-State Extension service surveys select feedlots around the state, and the LMIC compiles the data and extrapolates it to arrive at an “average” feedlot’s activities for the month. The LMIC then plots the data on various graphs to show the activity of this “average” feedlot for the month.
CLOSEOUTS DECLINE
The average Kansas feedlot marketed, or sold to packers, 4,765 head of slaughter-ready steers in September down 695, or 12.7%, from 5,460 in August. The September activity fell below the September 2020 average of 4,945 head by 180, or 3.64% but was 774, or 19.4%, more than the five-year average of 3,991.
The number of closeouts, or sales to packers, usually peaks twice in the summer months, once in June and once in August before declining to fall lows in September and October. A seasonal rise in closeouts follows in November and goes to the annual high in December.
Last year, sales peaked in August, fell to a low in November that challenged the COVID-induced low in April. A recovery in closeouts in December did not have the time to make up the October and November losses and get to an annual high.
FINAL WEIGHTS DECLINE
As the number of cattle ushered out of Kansas feedlots in September declined, so did the final weight of the steers being sent to their date with destiny. The average weight of fed steers marketed to packers was 1,404 pounds, down 11, or 0.78%, from 1,415 in August, down 38, or 2.64%, from 1,442 a year earlier and down 14.4, or 1.02%, from the 2015-2019 average of 1,418.4 pounds.
Up until August, exit weights of steers from Kansas feedlots had been following 2020 pretty well. But feedlot managers stopped trying to put extra pounds on them because of the high cost of feed and the lack of acceptable returns.
September was the first month this year that final weights fell below the 2015-2019 line.
DAYS ON FEED DROPS BELOW AVERAGE
The number of days cattle sold from the average feedlot spent on feed continued to decline in September and fell below the 2015-2019 average for the second time this year. Cattle sold in September spent an average of 159 days on feed, versus 173 in August, 175 a year ago and the previous 5-year average of 164.6.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $127.14 to $127.34 per cwt, compared with last week’s range of $124.70 to $127.09. FOB dressed steers and heifers went for $197.53 to $197.77 per cwt, versus $195.10 to $196.72.
The USDA choice cutout Monday was up $1.86 per cwt at $287.58, while select was up $1.02 at $264.39. The choice/select spread widened to $23.19 from $22.35 with 66 loads of fabricated product and 16 loads of trimmings and grinds sold into the spot market.
The USDA reported Monday that basis bids for corn from livestock feeding operations in the Southern Plains were up $0.08 to $0.10 at $1.30 to $1.40 a bushel over the Dec futures and for southwest Kansas were unchanged at $0.40 over Dec, which settled at $5.79 a bushel, up $0.10 3/4.
The CME Feeder Cattle Index for the seven days ended Friday was $156.56 per cwt up $0.68. This compares with Monday’s Nov contract settlement of $154.40 per cwt, down $2.17.