October steer closeouts, or sales, to beef packers from Kansas feedlots fell seasonally and could be the lowest of the season, according to data from the Kansas State University Extension Service.
The KSU Extension Service collects feed yard performance data monthly from a select group of feedlots around the state, and the Livestock Marketing Information Service compiles it into the activity and performance of an “average” feedlot in Kansas. Therefore, the data does not represent any one feedlot but a composite.
CLOSEOUTS DOWN
October closeouts, or marketings, of steers from that “average” feedlot totaled 3,547 head, down 893, or 20.1%, from the September total of 4,440, but up 124, or 3.62%, from 3,423 a year earlier and up 238, or 7.19%, from the 2018-2022 average of 3,309.
On average, Kansas feedlot closeouts peak in August and fall rapidly in September and October before bouncing in November and December. Last year, feedlot sales to packers peaked in June and August, fell in September and drifted to the seasonal low in November before recovering in December.
This year, the summer high in closeouts occurred in July. They then declined in September and dropped in October to nearly catch up to the five-year average.
Heifer sales in October, at 2,758 head, also declined from 2,881 in September but remained larger than last year’s 2,484 head. They were, however, down from the previous five-year average of 3,700.
On average, heifer marketings rise from a seasonal low in August and peak at an annual high in October before remaining nearly flat through November and December.
FINAL WEIGHTS KEEP RISING
Final weights of steers leaving Kansas feedlot in October continued to rise, showing no sign of slowing.
The average exit weight of steers leaving Kansas feedlots for their date with destiny in October was 1,510 pounds, up 13, or 0.87%, from September’s 1,497 pounds, up 80, or 5.59%, from last year’s 1,430 pounds and up 68, or 4.72%, from the 2018-2022 average of 1,442 pounds.
Exit weights of heifers from Kansas feedlots in October, at 1,326 pounds, declined from what may be the annual peak in September of 1,342 pounds. However, they remained higher than last year’s 1,293 pounds and the previous five-year average of 1,300 pounds.
Exit weights moved higher than 2023 and the average in March, while heifers took a month longer. Both have remained higher than last year or the average ever since.
The gap for both is so wide that convergence in November or December seems unlikely, a market analyst said.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $190.00 per cwt to $191.51, compared with last week’s range of $186.86 to $189.51 per cwt. FOB dressed steers, and heifers went for $292.77 per cwt to $302.54, compared with $290.89 to $298.91.
The USDA choice cutout Thursday was down $0.49 per cwt at $307.84 while select was off $0.60 at $277.10. The choice/select spread widened to $30.74 from $30.63 with 87 loads of fabricated product and 25 loads of trimmings and grinds sold into the spot market.
The USDA-listed weighted average wholesale price for fresh 90% lean beef was $315.38 per cwt, and 50% beef was $80.39.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.35 to $1.54 a bushel over the Dec corn contract and in Kansas unchanged at $0.15 over Mar. Dec settled at $4.26 1/2, up 4 1/2, and Mar settled at $4.35, up $0.05.
The CME Feeder Cattle Index for the seven days ended Wednesday was $260.47 per cwt, up $0.61. This compares with Thursday’s Jan contract settlement of $254.92, down $2.02.