The number of cattle populating Canada’s feedlots on July 1 continued to decline from the previous month, following seasonal trends but at a higher number, CanFax data showed.
CanFax, a Canadian market advisory group, collects cattle on feed data from member feed yards in Alberta and Saskatchewan releasing all but two numbers exclusively to its members. However, it shares the total on feed and monthly placement figures with the Livestock Marketing Information Center in Denver for compilation and general release on the LMIC website.
ON-FEED TOTALS SHOW TREND
The on-feed numbers, while down from a month earlier, show a yearly comparative trend toward more cattle on feed in Canada. Last year’s totals held at higher levels than the previous five-year average, and this year’s monthly totals also show more cattle on feed than last year or the 2016-2020 average.
The CanFax totals showed there were 985,992 head of cattle on feed in Canada on July 1. This was down 68,296, or 6.48%, from the June 1 total of 1.054 million head but up 47,368, or 5.05%, from last year’s 938,624 head and up 140,920, or 16.7%, from the previous five-year average of 845,072.
While this year’s monthly on-feed totals have held at higher levels than last year or the 2016-2020 average, it could slide below last year in coming months. Starting in June last year, extreme drought in Canada forced more young calves into feedlots than expected, artificially raising the number being held on feed for the rest of the year, a market analyst said.
This year, monthly totals are tracking the five-year average better, pointing to an artificial dip below 2021 totals soon, possibly by Aug. 1, the analyst said.
PLACEMENTS DIP BELOW 2021
The number of young cattle placed into Canadian feedlots in June dipped below the same month in 2021 for the first time since moving above the line in March, the data showed. However, placements still followed the seasonal trend of the 2016-2020 average closely.
The number of cattle placed on feed in June totaled 87,906 head, down 34,696, or 28.3%, from May’s 122,602 and 22,695, or 20.5%, below last year’s 110,601 head. Placements remained 21,909, or 33.2%, above the previous 5-year average of 65,997, though.
Since seasonalities have a strong correlation to events in Canada, July’s placements likely will be less than June’s, the analyst said. July marks the low point in monthly feedlot placements. They will be followed by a strong push to the annual high in October as pastures give out for the year. Placements will drop rapidly in November and December as available calves have already made the trip from pasture to feedlot.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $137.75 to $144.71 per cwt, compared with last week’s range of $137.00 to $145.17. FOB dressed steers, and heifers went for $216.39 to $219.67 per cwt, versus $216.89 to $220.37.
The USDA choice cutout Tuesday was up $1.00 per cwt at $269.11, while select was down $1.12 at $243.88. The choice/select spread widened to $25.23 from $23.11 with 93 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 $2.60 to $2.80 a bushel over the Sep futures and for southwest Kansas were unchanged at $0.10 over Sep, which settled at $5.97, up $0.17.
The CME Feeder Cattle Index for the seven days ended Monday was $169.91 per cwt up $0.89. This compares with Monday’s Aug contract settlement of $177.42, down $2.17.