The number of cattle on feed in Canada June 1 remained higher than last year and the previous five-year average after an uncharacteristic upturn a month earlier.
The data came from CanFax, a private market advisory firm that collects the data from members in Alberta and Saskatchewan. The Livestock Marketing Information Center in Denver then takes the total on-feed and placement numbers and compiles them for publication on its web site.
The Canadian Cattlemen’s Association said on its web page that Canada produces about 1.3 million tonnes of beef annually. The association also said Canada was one of the largest exporters of red meat and livestock in the world, exporting about 45% of Canadian beef and cattle production each year.
In 2018, Canada exported C$2.75 billion, or 398,580 tonnes of beef annually. This represented 38% of domestic slaughter and was a record high in beef export value.
ON-FEED NUMBERS DIP
The total number of cattle munching grain-based diets in Canadian feedlots on June 1 was 1.023 million head, the LMIC said. This was down 23,108, or 2.21%, from the 1.046 million of a month earlier but 55,601, or 5.75%, more than the 967,282 of a year earlier and 161,100, or 18.7%, more than the 2014-2018 average of 861,783.
Throughout last year, the number of cattle on feed in Canada surpassed the previous five-year average in every month. The closest it came to the average was in October.
So far this year, the number on feed exceeded last year in every month and appears to be ready to do it again.
PLACEMENTS RETURN TO NEAR NORMAL
The number of calves placed into Canadian feedlots in May was 91,351 head, down 21,574, or 19.1%, from April’s 112,925 but up 12,346, or 11.9%, from last year’s 103,697 and up 10,500, or 10.3%, from the 2014-2018 average of 101,851, the LMIC said.
Canadian feedlot placements in March basically cut off a seasonal hump, the data showed. Placements returned to near-normal in April and remained near normal in May.
Last year, placements were near the previous five-year average through September and then took a higher-than-normal bounce in October and didn’t return to near normal until December. However, monthly placements did peak on schedule in October and declined in November and December.
Monthly placements in Canada are influenced more by seasonal weather changes than in the US. Seasonal temperatures and snow cover there prevent a long grazing season, so most calves go to the feedlots or are exported to the US as pastures go dormant seasonally.
That being the case, monthly placements may remain near the five-year average into the fall, an analyst said. Fall placements could show a little more variation based on the size of the calf crop, which is unknown, and exports to the US.
CATTLE, BEEF RECAP
Cattle were sold in Nebraska Monday at $100 to $105 per cwt on a live basis, down $2 to $5 from last week’s $102 to $108 range across the Plains. Dressed-basis trading was reported at $160 per cwt steady to down $12 from last week.
The USDA choice cutout Monday was down $2.03 per cwt at $228.61, while select was off $4.92 at $214.35. The choice/select spread widened to $14.26 from $11.37 with 127 loads of fabricated product sold into the spot market.
No deliveries were tendered for delivery against the Aug live cattle contract Monday.
The CME Feeder Cattle index for the seven days ended Friday was $128.51 per cwt, down $1.07. This compares with Monday’s Aug contract settlement of $131.17, up $0.07.