Monthly Kansas Feedlot October Closeouts Decline

Kansas feedlot managers sold fewer slaughter-ready cattle in October than in September, a normal trend, but this year’s monthly decline was less steep than usual.

The data came from a monthly survey of selected feedlots around the state by the Kansas State University Extension service.  The data is forwarded to the Livestock Marketing Information Center in Denver for compilation and publication on the LMIC website.

The data is used to compile the actions of an “average” Kansas feedlot for the month, thereby giving a picture of what happened but obscuring the actions of any one feed yard.

 

CLOSEOUTS DOWN, NEAR AVERAGE

 

October fed steer closeouts, or sales to beef packers where the cattle are closed from the feedlot’s books, from the “average” Kansas feedlot totaled 3,423 head, down 94, or 2.67%, from September’s 3,517, up 1,166, or 51.7%, from last year’s 2,257 head and down 63, or 1.81%, from the 2017-2021 average of 3,486.

Monthly feedlot steer closeouts from November usually climb as the cooler weather of fall brings more cattle to market weight and finish and seasonal beef demand picks up.  Another gain often is seen in December to a level near an annual high.

October heifer closeouts averaged 2,484 head, down 820, or 24.8%, from 3,304 in September, down 1,079, or 30.3%, from 3,563 a year earlier and down 949, or 27.6%, from the previous five-year average of 3,433.

Heifer closeouts from Kansas feedlots diverged noticeably from the five-year average over the last three reported months, jumping in August and then falling sharply in September and October when it normally rises to December’s high.

 

FINAL WEIGHTS RISE WITH TREND

 

Exit weights of fed steers from Kansas feedlots in October rose from September, following the general trend of the 2017-2021 average.

October’s average exit weight of fed steers was 1,430 pounds, up six, or 0.42%, from September’s 1,424, down nine, or 0.63%, from last year’s 1,439 and down 6.4, or 0.45%, from the 2017-2021 average of 1,436.4 pounds.

If November steer exit weights keep following the five-year average, they likely will be reported higher followed by a leveling in December.  However, last year’s December final weights dropped sharply from November, only to rise again in January.

Final weights of fed heifers from Kansas feedlots in October leveled from September when they normally rise.  They were calculated at 1,293 pounds, down one, or 0.08%, from 1,294 in September, down 33, or 2.49%, from 1,326 a year earlier but up 3.4, or 0.26%, from the average of 1,289.6 pounds.

Following normal trends, heifer exit weights from Kansas feed yards should be reported higher for November and December.  This could be followed by a slight rise in January.

 

CATTLE, BEEF RECAP

 

The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $175.05 per cwt to $175.72, compared with last week’s range of $174.33 to $178.97 per cwt.  FOB dressed steers, and heifers went for $277.27 per cwt to $278.45, compared with $278.23 to $280.42.

The USDA choice cutout Monday was down $2.47 per cwt at $294.99 while select was off $2.66 at $262.83.  The choice/select spread widened to $32.16 from $31.97 with 106 loads of fabricated product and 63 loads of trimmings and grinds sold into the spot market.

The USDA said basis bids for corn from feeders in the Southern Plains were at $1.20 to $1.35 a bushel over the Mar corn contract, which settled at $4.85 a bushel, up $0.00 1/4.

No delivery intentions were posted for Dec live cattle Monday.

The CME Feeder Cattle Index for the seven days ended Friday was $223.27 per cwt, down $2.62.  This compares with Monday’s Jan contract settlement of $210.52, down $3.90.