Sales of slaughter-ready cattle from Kansas feedlots declined in October from September, following last year’s movement and totaling slightly more than the 2015-2019 average, according to data collected by the Kansas State University Extension Service and compiled by the Livestock Marketing Information Center in Denver.
The LMIC calculates the data into a form that represents an “average” Kansas feedlot and then publishes the data in graph form on its web site.
OCTOBER CLOSEOUTS FALL
Fed steer sales to beef packers, or closeouts, for October came in at an average of 4,045 head per feedlot, down 720, or 15.1%, from 4,765 in September but 652, or 19.2%, more than last year’s 3,393 and 42, or 1.05%, more than the previous five-year average of 4,003.
October’s decline was a continuation of the pattern begun after this year’s high in July of 5,690 head.
July’s marketings peak was almost on time. The data showed that June and August tend to have a peak in marketings from Kansas feedlots with a dip in July. The annual high in fed steer sales to beef packers usually comes in December followed by a significant drop in January.
However, a market analyst said this may change in coming years as more and more of annual feedlot production is done on contract with the packers. Increased contracting could tend to smooth out monthly sales gyrations.
FINAL WEIGHTS JUMP
But as October feedlot sales slumped, the average final weights of the steers exiting Kansas feedlots during the month jumped to this year’s high of 1,470 pounds. This was up 66, or 4.70%, from September’s 1,404 pounds, up 10, or 0.68%, from last year’s 1,460 pounds and up 40, or 2.80%, from the 2015-2019 average of 1,430 pounds.
Aside from significant declines in August and September, fed steer weights coming out of Kansas feed yards through the first 10 months of the year tended to follow last year. October’s jump just brought them back up closer to last year’s line on the graph. Both years have averaged more than the previous five-year average, although seasonal movements tended to remain in place.
Following the trend of the 2015-2019 average, fed steer final weights should peak in November and decline a bit in December.
DAYS ON FEED BOUNCE
The number of days the steers that were sold to packers in October spent on feed bounced from the September low to average 170. Days on feed usually hit an annual low in October, bounce to a seasonal peak in November and decline in December.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $140.22 to $140.38 per cwt, compared with last week’s range of $140.55 to $143.75. FOB dressed steers and heifers went for $221.60 to $221.74 per cwt, versus $219.10 to $222.88.
The USDA choice cutout Tuesday was down $2.50 per cwt at $260.72, while select was off $4.84 at $248.80. The choice/select spread widened to $11.92 from $9.58 with 111 loads of fabricated product and 35 loads of trimmings and grinds sold into the spot market.
The USDA reported Tuesday that basis bids for corn from livestock feeding operations in the Southern Plains were unchanged at $1.30 to $1.40 a bushel over the Mar futures and for southwest Kansas were unchanged at $0.40 over Mar, which settled at $5.90 1/4 a bushel, up $0.05 1/4.
No delivery intentions were posted against the Dec live cattle contract Tuesday.
The CME Feeder Cattle Index for the seven days ended Monday was $161.77 per cwt down $0.39. This compares with Tuesday’s Jan contract settlement of $164.57 per cwt, down $0.95.