Canada’s cattle-on-feed numbers on June 1 were following the seasonal trend but at a higher level like they did last year, according to data from CanFax that was compiled by the Livestock Marketing Information Center in Denver.
CanFax, a private market advisory firm, collects data from member feedlots in Alberta and Saskatchewan and releases the totals to its members. CanFax also sends data about total on-feed numbers and monthly placements to the LMIC, which compiles it into graphs that are published on the LMIC website.
ON-FEED NUMBERS UP
The total number of cattle populating Canada’s feedlots on June 1 was 961,191 head, down 27,570, or 2.79%, from May’s 988,761 and down 61,692, or 6.03%, from last year’s 1.023 million. However, they were up 83,668, or 9.53%, from the 2015-2019 average of 877,523.
The on-feed numbers in Canada last year were above the five-year average all year, although the differences narrowed in the last quarter.
This year, the number of cattle on feed in Canadian feedlots began the year above the 2015-2019 average but below the monthly numbers for last year. They have remained in this gap thus far in the year, although the April 1 totals were very close to last year.
Seasonal trends in Canadian feedlot populations are very strong since the seasons are so markedly different. Winter erases all possibility of pastures, but summer increases grassland availability.
Thus, placements, and feedlot totals go down from April or May into the Sep. 1 low. From there, they go up again to the Dec. 1 annual high.
If weather patterns and politics don’t get in the way, the seasonal trend should hold again this year, a market analyst said.
PLACEMENTS VERY NEAR AVERAGE
For as much as feedlot totals have held near the 2015-2019 average through last year and so far this year, monthly placement numbers are holding very close to the average.
Placements in May were pegged at 108,447 head, down 14,651, or 11.9%, from April’s 123,098, but up 17,097, or 18.7%, from last year’s 91,351. They also were up 5,149, or 4.98%, from the previous five-year average of 103,298 head.
Last year’s feedlot placements during the spring were interrupted by the beginnings of the COVID-19 pandemic and can be expected to vary from the average.
If the seasonal trend continues uninterrupted, feedlot placements should continue to decline each month through July. At that point, a strong seasonal surge in feedlot placements will commence, culminating in the annual high in October near 338,000 head.
From there, placements will fall away again into the
December low of around 90,000 head.
CATTLE, BEEF RECAP
Fed cattle traded last week at $120 to $124 per cwt on a live basis, up $1 from the previous week. Dressed-basis trading last week was at $190 to $195, up $1 to $2.
The USDA choice cutout Friday was down $2.97 per cwt at $323.28, while select was off $3.63 at $283.61. The choice/select spread widened to $39.67 from $39.01 with 70 loads of fabricated product and 17 loads of trimmings and grinds sold into the spot market.
The USDA reported Friday that basis bids for corn from livestock feeding operations in the Southern Plains were unchanged at $1.00 to $1.07 a bushel over the Jul futures and for southwest Kansas were unchanged at $0.70 over Jul, which settled at $6.47 1/2 a bushel, down $0.07 3/4.
The CME Feeder Cattle Index for the seven days ended Wednesday was $141.28 per cwt up $0.93. This compares with Friday’s Aug contract settlement of $155.02 per cwt, down $2.37.