The number of slaughter-ready cattle sold to beef packers from Kansas feedlots in October continued to drop sharply and were well below last year and the previous five-year average, even setting the 2022 monthly low.
The data came from a monthly survey of selected Kansas feedlots by the Kansas State University Extension Service and turned over to the Livestock Marketing Information Center in Denver for processing and publication. The data is compiled to represent the average performance at the “average” feedlot in the state.
CLOSEOUTS DROP
The average Kansas feedlot in October sold 2,257 head of fed cattle to beef packers, down from 3,397 in September, down 648, or 16.0%, from last year’s 4,045 and down 519, or 13.3%, from the 2016-2020 average of 3,916. It was the lowest monthly total since March when it was 2,820 head.
The number of cattle sold to beef packers often declines from the August peak, and it has done so again this year. The difference is the change from last year and the previous five-year average is stark.
The total in November can be about steady with October before it rises again in December.
EXIT WEIGHTS STEADY
However drastic the decline in October Kansas feedlot steer sales, their average final weight was steady with September at 1,439 pounds. It was the third straight month for final weights to be 1,439 pounds.
October’s final weight of steers exiting the feedlots was down 31, or 2.11%, from 1,470 in the same month a year earlier but was up 11.4, or 0.80%, from the 2016-2020 average of 1,427.6 pounds.
Exit weights from Kansas feedlots in November tend to be higher than those in October, and, in fact, tend to rise from June into November. December’s exit weights tend to slide a little.
DAYS ON FEED STILL UP
Meanwhile, the number of days the steers sold to beef packers from Kansas feedlots in October remained elevated by historical standards. The average number of days spent munching feed totaled 173, steady with September but up three, or 1.76%, from 170 last year and up 16.2, or 10.3%, from the 2016-2020 average of 156.8.
The number of days spent on feed for fed cattle sold to packers usually drops to an annual low in October, although last year it dropped in September. This year hasn’t seen a fall drop in days on feed.
In November, the average days on feed for Kansas feedlot cattle sold for slaughter usually recovers to a point near the September total, whereupon it slides through December with only a slight decline.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $155.91 to $157.16 per cwt, compared with last week’s range of $155.00 to $159.07. FOB dressed steers, and heifers went for $246.16 to $247.79 per cwt, versus $243.70 to $251.95.
The USDA choice cutout Tuesday was down $2.07 per cwt at $254.95 while select was off $0.22 at $225.46. The choice/select spread narrowed to $31.34 from $31.34 with 108 loads of fabricated product and 21 loads of trimmings and grinds sold into the spot market.
The USDA said basis bids for corn from feeders in the Southern Plains were steady at $1.90 to $2.10 a bushel over the Mar futures and for southwest Kansas were unchanged at $1.00 over Mar, which settled at $6.53 1/2, down $0.00 1/2.
No cattle contracts were tendered for delivery Tuesday.
The CME Feeder Cattle Index for the seven days ended Monday was $179.97 per cwt up $0.03. This compares with Tuesday’s Jan contract settlement of $184.22, up $0.57.