The number of cattle in Alberta and Saskatchewan, Canada, feedlots on Aug. 1 continued to decline seasonally, but at a less-than-normal rate, according to data from CanFax, a private Canadian market consulting firm.
CanFax collects the data monthly but releases only the total on feed and the total monthly placements to the Denver-based Livestock Marketing Information Center. The LMIC then compiles the data and publishes it on its website.
ON-FEED NUMBER UP FROM AVERAGE, 2020
The number of cattle on feed in Canadian feedlots on Aug. 1 was 920,982 head, the CanFax numbers said. This was down 17,742, or 1.89%, from 938,724 last month but up 89,128, or 10.7%, from 831,854 a year earlier and up 210,560, or 29.6%, from the 2015-2019 average of 710,422 head.
Up until this latest report, Canadian cattle-on-feed numbers had been below last year but above the previous five-year average.
Normally, the number on feed declines more sharply in July and August into the annual low on Sep. 1, and a market analyst said the Sep. 1 on-feed number could be sharply lower than the Aug. 1 number.
“It would be unusual for Canadian feedlot numbers to not decline to a more pronounced Sep. 1 low than the current line indicates,” the analyst said. “But placements explain the unusual Aug. 1 on-feed numbers.”
JULY PLACEMENTS UP COUNTER-SEASONALLY
A counter-seasonal increase in June placements continued in July, the CanFax numbers showed. It’s normal for July placements to be the low-point in the year, but so far, May has been the bottom.
CanFax offers no commentary with the numbers it supplies to the LMIC, but drought and wildfires in Canada could have something to do with the unusual placement patterns, the analyst said.
July Canadian feedlot placements totaled 140,309 head, up 29,708, or 26.9%, from 110,601 in June, up 69,338, or 97.7%, from 70,971 a year ago and up 87,572, or 166.1%, from the 2015-2019 average of 52,737.
Having passed the normal monthly placement low in July, the number of placements could now follow the five-year average trend toward an Oct. 1 high, the analyst said. However, since cattle came to the feed bunks early, the peak in placements also could come earlier than usual.
Following the Oct. 1 high in placements, the placement rate usually drops sharply into December.
CATTLE, BEEF RECAP
The USDA reported an average formula net live-basis price for all steers and heifers of $124.29 per cwt, and a formula dressed basis price of $197.67.
The USDA reported a formula base price for live FOB fed steers Tuesday of $124.70 per cwt and for FOB fed heifers of $123.43. FOB dressed steers went for $192.28, while FOB dressed heifers sold at $191.55.
The USDA choice cutout Tuesday was up $8.26 per cwt at $338.06, while select was up $3.22 at $306.77. The choice/select spread widened to $31.29 from $26.25 with 77 loads of fabricated product and 44 loads of trimmings and grinds sold into the spot market.
The USDA reported Tuesday that basis bids for corn from livestock feeding operations in the Southern Plains were unchanged at $1.90 to $2.00 a bushel over the Sep futures and for southwest Kansas were unchanged at $0.70 over Sep, which settled at $5.58 1/4 a bushel, down $0.06 1/2.
Twenty-five heifer and no steer contracts were tendered for delivery Tuesday against the Aug live cattle contract.
The CME Feeder Cattle Index for the seven days ended Monday was $154.91 per cwt down $0.63. This compares with Tuesday’s Aug contract settlement of $156.57 per cwt, down $0.62.