The number of cattle on feed in Alberta and Saskatchewan on April 1 continued a nearly level monthly 2021 total, according to data from CanFax a private market advisory firm.
CanFax surveys member feedlots in the two provinces and shares some of its data with the Livestock Marketing Information Center in Denver who processes it and shares the totals on its website.
FEEDLOT INVENTORIES NEAR LAST YEAR
The number of cattle on feed in the two provinces on April 1 totaled 1.011 million head, up 7,000, or 0.70%, from March 1’s 1.004 million but nearly the same as Feb. 1’s 1.011 million. The April 1 total was down 7,000, or 0.69%, from the total a year earlier of 1.018 million but 75,861, or 8.11%, above the 2015-2019 average of 935,139.
A nearly steady number of cattle on feed from January through March is not total abnormal. The 2015-2019 average shows a minor dip for the Feb. 1 total followed by a shallow rise into the April 1 number. This is followed by a seasonal decline into the Sep. 1 total.
Last year, the number of cattle on feed in Canada declined from the Jan. 1 total to April 1. This was followed by a one-month increase to May 1, whereupon the seasonal influences took over and feedlot populations fell to the Sep. 1 low.
After Sep. 1, the number of cattle on feed rises to the Dec. 1 annual high.
PLACEMENTS RISE NORMALLY
Meanwhile, the number of calves placed on feed in March rose normally and nearly matched the 2015-2019 average, which was significantly higher than the March 2020 placements.
Feedlots in Canada placed 171,225 head of feeder cattle into their feed yards in March, up 25,982 or 17.9%, from February’s 145,243 and up 52,566, or 44.3%, from last year’s 118,659. However, it was 5,994, or 3.38%, fewer than the previous five-year average of 177,219 head.
Should placements follow the 2015-2019 average trend, they will decline in April and continue declining through July. At that point, they will rise into the October high.
After the October high in feedlot placements, new arrivals at Canada’s feedlots decline sharply through December. At that point, what was destined to be placed on feed has already been placed.
There is a strong tendency for feedlot placements in Canada to follow normal, seasonal trends. The climate differences between summer and winter are so stark that pasturing cattle becomes highly dependent on the weather and grass availability, which varies with the seasons.
CATTLE, BEEF RECAP
Fed cattle traded last week at $120 to $126 per cwt on a live basis, steady to up $1 from the previous week. Dressed-basis trading was at $193 to $196 per cwt, steady to down $2.
The USDA choice cutout Monday was up $0.12 per cwt at $276.17, while select was up $0.03 at $269.13. The choice/select spread widened to $7.04 from $6.95 with 62 loads of fabricated product and 29 loads of trimmings and grinds sold into the spot market.
The USDA reported Monday that basis bids for corn from livestock feeding operations in the Southern Plains were unchanged at $1.05 to $1.16 a bushel over the May CBOT futures contract, which settled at $5.92 a bushel, up $0.06 1/2.
There were no delivery intentions posted against the Apr live cattle futures contract Monday. None were retendered, and none were demanded or reclaimed.
The CME Feeder Cattle Index for the seven days ended Friday was $140.13 per cwt down $1.55. This compares with Monday’s Apr contract settlement of $137.72 per cwt, down $1.90.