Canada’s cattle on feed total on May 1 was down seasonally from April 1 but remained well above last year and the previous five-year average, according to data from CanFax, a private market advisory company.
However, the number of calves placed on feed in April was only slightly more than last year and the 2016-2020 average.
CanFax obtains the data from members in Alberta and Saskatchewan and publishes the results for its members. It releases on-feed and placement data to the Livestock Marketing Information Center in Denver for more public dissemination.
ON-FEED TOTALS STAY ABOVE YEAR AGO, AVERAGE
The number of cattle munching grain in Canada’s feedlots on May 1 totaled 1.080 million head, CanFax said. This was down 29,000, or 2.61%, from April 1’s 1.109 million.
However, the total was up 91,000, or 9.23%, from last year’s 988,761 head and up 123,000, or 12.8%, from the previous five-year average of 957,092.
Seasonally, the number of cattle in Canada’s feedlots will decline into the Sep. 1 annual low and then grow to the annual high by Dec. 1. Last year, feedlot populations did decline seasonally, but beginning July 1 they began a significant increase over the five-year average trend.
A market analyst said extreme drought and wildfires last year sent many younger calves to feedlots earlier than planned because there was no grass in some parts of the country. Many of these areas still are dry, so a repeat of last year’s trend is possible, he said.
PLACEMENTS FOLLOW TREND
Meanwhile, feedlot placements in April followed last year and the previous five-year average very closely. However, the total was more than both previous benchmarks.
The number placed in April was 137,102 head, down 51,759, or 27.4%, from March’s 188,861 but up 14,004, or 11.4%, from last year’s 123,098 and up 16,305, or 13.5%, from the 2016-2020 average of 120,797 head.
Following the trend, monthly feedlot placements will decline through July, whereupon they will rise sharply through October as pastures give out seasonally. The placement rate then will drop through December or January. The annual monthly high in placements will come in October.
There is a strong seasonality to Canada’s feedlot placements because the seasons are more pronounced than those in the lower 48. Pastures come and go with the rise and fall of ambient temperatures and day lengths.
Last year, summer placements surged because of the drought and wildfires, which still are threats this year, a market analyst said. Last year, October’s annual high placements were exacerbated by the dry conditions.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $139.00 to $143.18 per cwt, compared with last week’s range of $140.00 to $144.52. FOB dressed steers, and heifers went for $219.20 to $220.73 per cwt, versus $219.21 to $225.67.
The USDA choice cutout Wednesday was down $0.72 per cwt at $262.93, while select was down $1.29 at $244.06. The choice/select spread widened to $18.87 from $18.30 with 84 loads of fabricated product and 18 loads of trimmings and grinds sold into the spot market.
The USDA reported that basis bids for corn from feeders in the Southern Plains were unchanged at $1.55 to $1.65 a bushel over the Jul futures and for southwest Kansas were steady at even the Jul, which settled at $7.72 1/4 a bushel, up $0.00 1/2.
The CME Feeder Cattle Index for the seven days ended Tuesday was $153.35 per cwt up $0.18. This compares with Wednesday’s May contract settlement of $154.60, up $0.10.