April 1 Canadian cattle on feed were down counter-seasonally from March, extending a 2023 decline.
The data came from CanFax, a private market advisory group, which surveys feedlots monthly in Alberta and Saskatchewan. It shares all of its survey results with its members but shares the total on feed and monthly placement numbers with the Livestock Marketing Information Center in Denver, which compiles it and shares the data on its website.
ON-FEED NUMBERS DOWN FROM 2022
On-feed numbers in Canada on April 1 totaled 1.014 million head, down 21,000, or 2.03%, from March’s 1.035 million, down 95,000, or 8.57%, from 1.109 million last year but up 37,122, or 3.80%, from the 2017-2021 average of 976,878.
Canada’s on-feed numbers typically decline into Feb. 1 and then rise slowly to an April 1 seasonal high. From there, they slowly begin a steep decline to the annual low on Sep. 1.
Last year, the numbers declined into March 1, rallied to April 1 and then followed the seasonal trend lower into Sep. 1.
In the fall, pastures give out, feedlot placements increase, and on-feed numbers rise to the annual high on Dec. 1.
There isn’t much that would change the seasonal tendencies past May 1, even though the trend is down from this report, according to graphs of this year’s on-feed totals compared with last year and the previous five-year average. Seasons play a big roll in Canada’s cattle industry where winter and summer are so different with Canada’s winter being particularly harsh, compared with the contiguous 48 states.
PLACEMENTS TRAIL PREVIOUS YEARS
March feedlot placements in Canada trailed last year and the 2017-2021 average, although they moved up from February with the seasonal trend.
Canadian feedlots placed 152,680 head on feed in March, up 24,090, or 18.7%, from 128,590 in February but down 36,181, or 19.2%, from 188,861 in the same month a year ago and down 19,143, or 11.1%, from the previous five-year average of 171,823 head.
March typically is the seasonal peak for feedlot placements. The five-year average has them declining through July, whereupon they rise sharply into the October high before dropping sharply into December.
This corresponds to seasonal declines in pasture quality, the time for producers to wean calves and prepare for winter.
With no pasture available until the next spring, many of the calves go into feed yards.
Many of Canada’s feeder cattle come south into the US to be fed to maturity and slaughtered here.
However, the USDA office in Ottawa said in an April 1 report that the ongoing contraction of the Canadian cattle herd is expected to continue in 2022, but high feed costs and limited availability will see live exports outpace 2021 through the first half of 2022.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $178.82 per cwt to $179.05, compared with last week’s range of $172.20 to $179.46 per cwt. FOB dressed steers, and heifers went for $277.51 per cwt to $281.66, compared with $261.33 to $273.20.
The USDA choice cutout Monday was up $3.36 per cwt at $305.98 while select was up $5.45 at $289.32. The choice/select spread narrowed to $16.66 from $18.75 with 43 loads of fabricated product and 27 loads of trimmings and grinds sold into the spot market.
The USDA said basis bids for corn from feeders in the Southern Plains were up $0.05 to 0.10 at $1.63 to $1.75 a bushel over the May corn contract, which settled at $6.79 a bushel, up $0.02 1/2.
No live cattle futures deliveries were tendered Monday.
The CME Feeder Cattle Index for the seven days ended Friday was $205.64 per cwt, up $4.35. This compares with Monday’s Apr contract settlement of $205.55 per cwt, up $2.15.