The number of cattle on feed in Canada’s feedlots on June 1 continued their seasonal decline, nearly intersecting last year’s declining line on a line graph but remaining well below the 2019-2023 average.
The data came from Canfax, a division of the Canadian Cattle Association, through the Livestock Marketing Information Center in Denver. Canfax collects data from member feedlots in Alberta and Saskatchewan and shares the total on feed and the monthly placements with the LMIC for compilation and publication on its website.
ON-FEED NUMBERS DECLINE
As of June 1, Canada’s feedlot population totaled 905,511 head, down 29,242, or 3.13%, from 934,753 on May 1, down 4,497, or 0.49%, from 910,008 a year earlier and down 83,178, or 8.41%, from the previous five-year average of 988,689.
For comparison, the US on-feed report showed the number of cattle placed into feedlots of 1,000 or more capacity in April was 1.613 million head, compared with Urner Barry’s implied average pre-release survey estimate of about 1.605 million. Placements were 43,000, or 2.60%, fewer than the 1.656 million of a year ago.
The Urner Barry survey for the US June 1 count showed analysts and traders expected the on-feed number to run 98.8% of a year earlier with a range of estimates running from 98.1% to 99.4%.
If Canadian monthly on-feed numbers continue on their seasonal path, they will bottom for the Sep. 1 count near 800,000 head. From there, they will climb quickly to the annual high on Dec. 1.
PLACEMENTS HIGHER THAN LAST YEAR
Canadian feedlot placements were down seasonally from April but were larger than in the same month a year ago since they didn’t decline as rapidly.
May placements numbered 98,305, down 8,585, or 8.03%, from 106,890 in April, up 1,607, or 1.66%, from 96,698 a year earlier and down 10,327, or 9.51%, from the previous five-year average of 108,632.
For comparison, April US feedlot placements totaled 1.613 million head, down 3% from 1.656 million a year earlier, and Urner Barry’s survey showed analysts and traders expected May placements to run 94.2% of a year ago with a range of 88.0% to 97.7%.
Should monthly Canadian feedlot placements run seasonally, they will continue to decline through July. From there, they will rise rapidly through October’s peak and then drop off sharply in November and December.
Feedlot placements usually begin increasing in mid-summer as pastures begin to go dormant seasonally. Placements peak in October as weaning is completed and pastures are fully dormant or covered with snow.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week was not available, compared with last week’s range of $225.15 to $243.37 per cwt. FOB dressed steers, and heifers went for $353.24 per cwt to $376.32, compared with $353.24 to $376.32.
The USDA choice cutout Monday was up $4.23 per cwt at $382.11 while select was up $3.97 at $367.47. The choice/select spread widened to $14.64 from $14.38 with 35 loads of fabricated product and 26 loads of trimmings and grinds sold into the spot market.
The USDA-listed the weighted average wholesale price for fresh 90% lean beef was $391.46 per cwt, and 50% beef was $165.69.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.22 to $1.30 a bushel over the Jul corn contract, which settled at $4.35, up $0.00 1/4.
No live cattle delivery notices were posted.
The CME Feeder Cattle Index for the seven days ended Friday was $313.89 per cwt, down $3.21. This compares with Monday’s Aug contract settlement of $310.22, up $3.80.