Canadian Cattle on Feed numbers on Oct. 1 remained above last year and the previous five-year average, according to data from CanFax, a private market advisory group.
CanFax surveys customers in Alberta and Saskatchewan for its on-feed data and shares the on-feed and placement numbers with the Livestock Marketing Information Center in Denver for compilation and publication. The rest of the data, CanFax reserves for its members.
ON-FEED NUMBERS UP
While Canada’s on-feed numbers rose seasonally, they did remain higher than last year and the 2017-2021 average.
On Oct. 1, there were 921,390 head of cattle populating Canada’s feedlots. This was up 95,074, or 11.5%, from the Sep. 1 year-to-date low of 826,316 head, up 37,963, or 4.30%, from last year’s 883,427 and up 154,924, or 20.2%, from the five-year average of 766,466.
Canada’s cattle on feed numbers have a seasonal/annual bottom with the Sep. 1 tally and rise to the annual high with the Dec. 1 total. So, the Sep. 1 total can reliably be counted on to be the annual low.
Sep. 1 also was the first total this year where the 2023 number was more than the 2022 total. Prior to that, the 2023 on-feed numbers were less than last year and less than the five-year average in the May and June reports.
From here on, monthly on-feed numbers are liable to keep climbing, but it will be possible for them to swing back below the 2022 numbers.
PLACEMENTS ALSO UP
Placements of young cattle into Canadian feedlots also were up on Oct. 1. The report showed 267,309 head were placed on feed in September, up 111,904, or 72.0%, from 155,405 in August, up 4,200, or 1.60%, from 263,109 a year earlier and up 58,209, or 27.8%, from the 2017-2021 average of 209,100.
Monthly placements so far this year bottomed in April at 96,968 head. They rose a little in May but declined slightly in June and July before beginning an annual rise in August.
The annual peak in Canadian feedlot placements happens in October. From there, they plummet in November and December to a point at, or near, the annual low.
Feedlot placements in Canada have more of a seasonal tone to them than they do in the contiguous 48 states of the US. Seasonal weather conditions change to harsher conditions earlier in the summer than in the US, sending pasture grasses into winter dormancy. Depending on the specie of grass, this dormancy change can take place earlier or later in the year.
At some point, though, young cattle destined for the feedlots have to be moved off pastures that soon will be covered with snow and into the feedlots.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $184.78 per cwt to $185.68, compared with last week’s range of $184.00 to $189.69 per cwt. FOB dressed steers, and heifers went for $291.05 per cwt to $293.67, compared with $289.71 to $296.04.
The USDA choice cutout Tuesday was down $4.10 per cwt at $305.18 while select was off $1.39 at $279.50. The choice/select spread narrowed to $25.68 from $28.39 with 111 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 to up $0.03 at $1.25 to $1.38 a bushel over the Dec corn contract, which settled at $4.78 3/4 a bushel, up $0.00 1/2.
No live cattle contracts were posted for delivery Tuesday.
The CME Feeder Cattle Index for the seven days ended Monday was $237.23 per cwt, up $0.70. This compares with Tuesday’s Nov contract settlement of $237.70, up $0.02.