Canada’s monthly cattle on feed numbers continue to decline seasonally, with the Aug. 1 total remaining at a point between last year and the previous five-year average, according to data from CanFax, a private Canadian market advisory group.
Placements of younger cattle into feedlots for growth and finish before slaughter, however, were up from last year and the 2017-2021 average.
CanFax collects data from its members in Alberta and Saskatchewan and shares the monthly totals and placements with the Livestock Marketing Information Center in Denver for compilation and dissemination through its website. All other data is held privately for CanFax members.
ON-FEED NUMBERS DOWN SEASONALLY
The data showed the number of cattle populating Canada’s feedlots on Aug. 1 totaled 847,960 head, down 62,222, or 6.84%, from 910,182 a month earlier. This also was down 43,199 head, or 4.85%, from the Aug.1, 2022, total of 891,159 head but up 53,232, or 6.70%, from the 2017-2021 average of 794,728.
On average, the July 1 to Aug. 1 total declines 87,572 head, or 9.93%, so this year’s month-to-month decline is less than the five-year average.
If Canada’s cattle on feed numbers continue to follow the trend downward, and there’s no indication they won’t, they should record an annual low on Sep. 1. From there, they will increase moderately into Oct. 1, and then increase rapidly through the Dec. 1 annual high.
Seasonalities are very strong in Canada’s cattle on feed populations. It all hinges on available pasture. As winter descends and pastures run out, more cattle are placed on feed increasing the totals being fed rations.
PLACEMENTS ALSO DECLINE
Placements of cattle into Canada’s feedlots in July also declined from June, but July’s feedlot placements usually are the low point in the year. And, they were more than last year or the previous five-year average.
July placements into Canada’s feedlots numbered 95,352 head, down 6,425, or 6.31%, from June’s 101,777 but up 34,171, or 55.9%, from July 2022’s 61,181 head and up 19,364, or 25.5%, from the 2017-2021 average of 75,988 head.
Seasonally, Canadian feedlot placements should rise in August as pastures begin to give out for the year. The peak will come in October when many pastures have either gone dormant, show covered or both.
November and December placements fall off rapidly as the number of available feeder cattle dry up. By this time, almost all calves that are aimed at the feedlot have already been sent there.
CanFax does not share data on the number of calves born in a year or the monthly number of fed cattle that are sent to slaughter.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $179.55 per cwt to $189.46, compared with last week’s range of $180.00 to $191.12 per cwt. FOB dressed steers, and heifers went for $285.06 per cwt to $293.58, compared with $283.74 to $293.54
The USDA choice cutout Tuesday was up $1.49 per cwt at $317.05 while select was up $2.18 at $289.51. The choice/select spread narrowed to $27.54 from $28.23 with 67 loads of fabricated product and 29 loads of trimmings and grinds sold into the spot market.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.70 to $1.90 a bushel over the Sep corn contract, which settled at $4.66 1/2 a bushel, down $0.02 3/4.
No contracts were tendered for delivery against the Aug cattle contract Tuesday.
The CME Feeder Cattle Index for the seven days ended Monday was $244.96 per cwt, down $0.27. This compares with Wednesday’s Aug contract settlement of $245.50 per cwt, down $1.27.