Closeouts by Kansas feedlots in September declined seasonally and remained below the 2017-2021 average, according to a monthly survey of select yards across the state.
The Kansas State University Extension service conducts a monthly survey of those lots, collecting data on the closeouts, or cattle sold to beef packers and closed out of the feedlots’ books. The data then is fed to the Livestock Marketing Information Center in Denver for compilation and publication on the LMIC website.
FEWER CLOSEOUTS
The LMIC compilation showed the “average” Kansas feed yard sold 3,517 head of slaughter-ready cattle to beef packers in September, down 1,448, or 29.2%, from 4,965 in August.
September closeouts were up 120, or 3.53%, from 3,397 in the same month of 2022 but down 802, or 18.6%, from the previous five-year average of 4,319.
Monthly Kansas feedlot closeouts have been less than the 2017-2021 average all year, except for February. Monthly direction of changes have followed the average in all months except February and July, although differences have been minor.
Going forward, monthly closeouts should decline to their annual low in October before rebounding in November and December to end at one of the largest of the year.
FINAL WEIGHTS ABOVE AVERAGE
The exit weights of fed cattle going to the packers in September was up from the average and from August although less than last year.
The average weight of cattle exiting Kansas feedlots was 1,424 pounds, up nine, or 0.64%, from 1,415 in August down 15, or 1.04%, from 1,439 last year but up 12, or 0.85%, from the previous five-year average of 1,412.
Monthly exit weights have been higher than average all year except in July. They also have been less than last year except in April. In a general sense, exit weights have followed average monthly trends, and are likely to rise through November.
December’s exit weights have only a small tendency to rise from November, meaning there is little to recommend a higher forecast for the month. Last year, they dropped sharply.
DAYS ON FEED DOWN
The average number of days September’s closeouts spent on feed declined from August but remained much higher than last year or the average.
September’s cattle closeouts spend an average of 186 days on feed, down eight, or 4.12%, from August’s 194 but up 13, or 7.51%, from last year’s 173 and up 17.8, or 10.6%, from the average of 168.2.
Average days on feed usually decline into an annual low in October. From there, they rebound in November and level off in December.
A market analyst said days on feed were liable to remain elevated from previous years through December as packers are seeking choice carcasses and are willing to pay for them.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $185.00 per cwt to $185.97, compared with last week’s range of $183.70 to $187.04 per cwt. FOB dressed steers, and heifers went for $290.71 per cwt to $292.25, compared with $290.70 to $293.67.
The USDA choice cutout Wednesday was down $1.63 per cwt at $298.75 while select was up $1.55 at $271.03. The choice/select spread narrowed to $27.72 from $30.90 with 110 loads of fabricated product and 25 loads of trimmings and grinds sold into the spot market.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.35 to $1.45 a bushel over the Dec corn contract, which settled at $4.76 a bushel, up 7 1/2.
The CME Feeder Cattle Index for the seven days ended Monday was $238.13 per cwt, down $0.76. This compares with Wednesday’s Nov contract settlement of $234.55, up $2.32.