Partly in response to lower-than-average placements for most of this year, Canada’s total number of cattle on feed continued to drop in this month’s report.
CanFax is a division of the Canadian Cattle Association, located in Calgary, Alberta. Staff there collect feeding information from feedlots in Alberta and Saskatchewan.
CanFax then shares the total on feed number and the previous month’s placement number with the Livestock Marketing Information Center in Denver, Col., where it is compiled, graphed and published on the LMIC Website.
CanFax shares other information collected with its members.
ON-FEED NUMBERS DROPPING
Data collected by CanFax, showed the number of cattle in the nation’s feedlots falling and widening the gap between this year’s monthly totals and previous years.
The Aug. 1 total of cattle on feed in Canada was 780,299 head, down 90,807, or 10.4%, from 871,106 in July, down 67,661, or 7.98%, from 847,960 in August 2023 and down 58,402, or 6.96%, from the 2018-2022 average of 838,701 head.
Canada’s monthly feedlot population has been lower each month, following the trend of 2023. The previous five-year average shows a slight increase in the March and April reports, followed by a sloping decline into the Sep. 1 tally.
If on-feed totals follow the seasonal trend, they will show a monthly decline to the Sep. 1 total and then rise rapidly each month through the Dec. 1 total. The Jan. 1 total will then show a marked falloff from Dec. 1.
There is little reason to think the seasonal trends won’t hold this year, a market analyst said. Seasonalities play a large roll in feedlot placements and feeding in Canada because of the weather changes from summer to winter and the corresponding grazing opportunities.
PLACEMENTS ALSO DOWN
July feedlot placements in Canada also were down from June, July 2023 and the 2018-2022 average.
Placements in July totaled 74,843 head, down 8,443, or 10.1%, from 83,286 in Jund, down 20,509, or 21.5%, from 95,352 a year ago and down 3.943, or 5.00%, from the previous five-year average of 78,786 head.
The rate of placements in Canada’s feedlots should rise in August and show up in the September report. Seasonally, feedlot placements hit their annual low in July and rise rapidly in August as pastures begin to fade toward going dormant and being covered with snow.
Monthly placements peak in October and drop of quickly in November and December, almost touching the July low. This year, they have been less than the average in every month except February.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $186.00 per cwt to $196.79, compared with last week’s range of $184.41 to $196.56 per cwt. FOB dressed steers, and heifers went for $292.54 per cwt to $300.38, compared with $294.90 to $303.69.
The USDA choice cutout Wednesday was up $0.13 per cwt at $315.21 while select was up $0.04 at $301.08. The choice/select spread widened to $14.13 from $14.04 with 106 loads of fabricated product and 18 loads of trimmings and grinds sold into the spot market.
The weighted average USDA listed wholesale price for fresh 90% lean beef was $376.63 per cwt, and 50% beef was $160.11.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.50 to $1.60 a bushel over the Sep corn contract, which settled at $3.75 ½ a bushel, up $0.00 1/2.
No live cattle contracts were tendered for delivery Wednesday.
The CME Feeder Cattle Index for the seven days ended Tuesday was $243.73 per cwt, down $0.12. This compares with Wednesday’s Aug contract settlement of $239.25, up $1.05.