Canada’s monthly cattle on feed Aug. 1 declined seasonally but continued to widen the gap between 2024 totals and both last year and the 2018-2022 average.
The data is collected by CanFax, a division of the Canadian Cattle Association from feedlots in Alberta and Saskatchewan. Most of the collected data is kept and distributed to Canadian producers, but the total on feed and the monthly placement statistics are shared with Denver’s Livestock Marketing Information Center for compilation and distribution on its website.
CATTLE ON FEED DOWN
The number of cattle reported on feed in Canada totaled 780,299 head, down 90,807, or 10.4%, from 871,106 in July, down 67,661, or 7.98%, from 847,960 a year ago and down 58,402, or 6.96%, from the previous five-year average of 838,701.
For comparison, the US on Aug. 1 had 11.095 million head on feed, down from 11.304 million on July 1 but up slightly from 11.064 million a year earlier.
It’s normal for the number of cattle on feed in Canada to decline during the summer as placements fall behind marketings since many areas still have viable pastures on which to graze calves.
The normal low in Canadian feedlot populations comes in the Sep. 1 count. At that point, it’s obvious that placements are running ahead of feedlot marketings to packers for slaughter.
The annual peak in Canadian cattle on feed comes with the Dec. 1 census. A notable decline occurs in December.
PLACEMENTS TOUCH ANNUAL BOTTOM
Canadian feedlot placements were down in July from a month earlier, a year earlier and from the 2018-2022 average. For the month, there were 74,843 head placed on feed, down from 83,286 a month earlier, down from 95,352 a year earlier and down from the average of 78,786.
For comparison, the US registered 1.702 million head placed on feed in July, up 138,000, or 8.82%, from 1.564 million in June and up 94,000, or 5.85%, from 1.608 million a year earlier.
July marks the seasonal bottom in Canadian feedlot placements. As pastures decline for the year, calves will be weaned, and an increasing number will be sent to the feedlots each month, peaking in October.
From there, they drop off sharply until a seasonal low in December. January generally sees a small increase in placements that rises through March where it drops off again each month through July.
Seasonalities and pasture availability dictate much of the decision to send calves to the feedlots. General trends for each season will hold since there is little choice not to follow the feed availability.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $183.00 per cwt to $184.74, compared with last week’s range of $183.00 to $196.22 per cwt. FOB dressed steers, and heifers went for $288.78 per cwt to $291.84, compared with $289.28 to $296.44.
The USDA choice cutout Wednesday was up $0.93 per cwt at $311.60 while select was off $0.72 at $299.39. The choice/select spread widened to $12.21 from $10.56 with 129 loads of fabricated product and 40 loads of trimmings and grinds sold into the spot market.
The weighted average USDA listed wholesale price for fresh 90% lean beef was $376.62 per cwt, and 50% beef was $135.27.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.29 to $1.39 a bushel over the Dec corn contract, which settled at $4.12 13/4 a bushel, up $0.03 1/2.
The CME Feeder Cattle Index for the seven days ended Tuesday was $239.53 per cwt, down $0.45. This compares with Wednesday’s Sep contract settlement of $239.62, down $1.75.