Canada’s May 1 cattle on feed numbers continued a seasonal decline but fell further below the 2018-2022 average as April placements dipped to a point between year-ago and the previous five-year average.
For comparison, the May US Cattle on Feed report showed the April 1 population in feedlots of 1,000 head or more one-time capacity at 11.821 million head, down from 11.838 million a month earlier but up from 11.647 million a year earlier.
Canada’s feedlot count is made by CanFax, a private market advisory group, of feed yards in Alberta and Saskatchewan. The total number of cattle on feed and the monthly placements are given to the Livestock Marketing Information Center in Denver for compilation and publication. The rest are shared only with CanFax members.
CANADIAN ON-FEED NUMBERS SLIDE
On May 1, feed yards in Canada had 950,388 head of cattle on hand that were destined for the packer. This was down 47,439, or 4.75%, from 997,827 on April 1, down 15,729, or 1.63%, from 966,117 a year earlier and down 54,767, or 5.45%, from the previous five-year average of 1.005 million.
This year’s monthly movements of cattle on feed totals is following last year’s trend more closely than the 2018-2022 average. However, the 2023 and five-year average lines cross sometime in July, and they both set an annual low by the Sep. 1 tally.
Seasonal weather changes dictate much of the monthly movements of cattle in and out of Canadian feedlots. Winter and Summer are in such sharp contrast that growing/grazing seasons can’t be altered by much.
APRIL PLACEMENTS DECLINE FROM MARCH
April placements of young cattle into Canadian feedlots declined seasonally to 118,487 head, down 28,338, or 19.3%, from 146,825 a month earlier. However, the April number was up 21,519, or 22.2%, from 96,968 last year and down 8,004, or 6.33%, from the 2018-2022 average of 126,491 head.
Month-to-month Canadian feedlot placements have a strong seasonal tendency to decline into an annual low on July 1 somewhere near 79,000 head. From March through June, Canada’s pastures provide the feed they need. However, some grasses don’t deal well with summer’s heat, and young cattle begin the annual march to the feedlots.
Canada’s monthly placements peak by the Oct. 1 count and drop sharply from there through the Dec. 1 total. By Jan. 1, feedlot placements begin to inch upward to a secondary annual high on March 1.
Nothing is shared about monthly Canadian feedlot marketings to the packing plants or to the US for slaughter and processing.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $184.00 per cwt to $187.31, compared with last week’s range of $184.00 to $189.52 per cwt. FOB dressed steers, and heifers went for $290.74 per cwt to $295.90, compared with $289.94 to $295.35.
The USDA choice cutout Monday was down $0.75 per cwt at $312.70 while select was up $1.95 at $299.35. The choice/select spread narrowed to $13.35 from $16.05 with 81 loads of fabricated product and 37 loads of trimmings and grinds sold into the spot market.
The weighted average USDA listed wholesale price for fresh 90% lean beef was $348.33 per cwt, and 50% beef was $61.83.
The USDA said basis bids for corn from feeders in the Southern Plains were up $0.02 to $0.04 at $1.38 to $1.50 a bushel over the Jul corn contract, which settled at $4.60 1/2 a bushel, up $0.08.
The CME Feeder Cattle Index for the seven days ended Friday was $246.87 per cwt, up $3.83. This compares with Monday’s May contract settlement of $246.70, down $0.02.