Canada’s Sep. 1 cattle on feed likely hit the annual low point at 767,495 head after declining consistently through the first eight months of the year, according to data gathered from members by CanFax, a nonprofit industry organization based in Calgary, Alberta.
CanFax gathers information monthly from member feedlots in Alberta and Saskatchewan and forward the data on total numbers on feed and monthly placements to the Livestock Marketing Information Center in Denver. The LMIC then compiles this data and publishes it in graph form on its website. All other information on Canadian feedlot activity is held and given only to member feedlots.
A LIKELY ANNUAL LOW
Canada’s Sep. 1 total cattle on feed number often is the annual low. Climactic conditions there force calves off of dwindling or snow-covered pastures through August. Most end up in feedlots after being weaned.
Feedlot totals then grow through the end of the year to the annual high on Dec. 1.
The Sep. 1 total of 767,495 head was down from the Aug. 1 total of 780,299 head by 12,804, or 1.64%. It also was down from the 2018-2022 average of 784,967 head by 17,472, or 2.23%, and down from September 2023’s 921,390 head by 153,895, or 16.7%.
By contrast, the USDA reported the Sep. 1 US cattle on feed total was 11.198 million head, up 103,000, or 0.93%, from 11.095 million a month earlier and up 71,000, or 0.64%, from 11.127 million a year earlier. The Oct. 1 total was 11.600 million head, down 4,000, or 0.03%, from 11.604 million a year earlier.
Last year in Canada, the Sep. 1 total began a trend where each month’s total on feed was larger than the 22018-2022 average. This year, the total has been less than last year since Feb. 1 and lower than the previous five-year average since the April 1 total.
PLACEMENTS UP SEASONALLY
Canada’s August feedlot placements, at 150,232 head were up 75,389, or 100.7%, from July’s 74,843 and up 23,689, or 18.7%, from the 2018-2022 average of 126,543 but 5,173, or 3.33%, less than last year’s 155,405 head.
July is the annual low point in Canadian feedlot placements, according to the five-year average, although January and December rival July’s low point. The high point in feedlot placements there is October when there is nothing much left to do with the calves but put them on feed.
August’s US feedlot placements totaled 1.976 million head, down from 2.003 million a year earlier. September’s US placements totaled 2.158 million head down from 2.198 million a year earlier.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $190.79 per cwt to $191.22, compared with last week’s range of $189.82 to $200.00 per cwt. FOB dressed steers, and heifers went for $299.11 per cwt to $299.38, compared with $294.97 to $301.45.
The USDA choice cutout Monday was up $0.57 per cwt at $316.91 while select was up $2.13 at $287.16. The choice/select spread narrowed to $29.75 from $31.31 with 83 loads of fabricated product and 20 loads of trimmings and grinds sold into the spot market.
The USDA-listed weighted average wholesale price for fresh 90% lean beef was $347.81 per cwt, and 50% beef was $75.09.
The USDA said basis bids for corn from feeders in the Southern Plains were up $0.11 to $0.14 at $1.40 to $1.56 a bushel over the Dec corn contract and unchanged in Kansas at $0.25 over Dec, which settled at $4.16 1/2 a bushel, up $0.02.
The CME Feeder Cattle Index for the seven days ended Friday was $251.00 per cwt, up $0.02. This compares with Monday’s Nov contract settlement of $246.35, down $0.52.