As of June 1, Canada’s population of cattle in feedlots was slightly less than the 2017-2021 average and on course to follow the seasonal trend downward.
The data came from CanFax, a private market advisory firm located in Calgary, Alberta. The data is from member feedlots in Alberta and Saskatchewan. Most of the gathered information is compiled and shared with its members, but CanFax does share the total on feed and the number of placements monthly with the Livestock Marketing Information Center in Denver, which publishes it on its website.
FEEDLOT POPULATION DECLINES
Canada’s feedlots had 937,800 head of cattle in them on June 1, the CanFax data showed. This was down 28,317, or 2.93%, from 966,117 a month earlier, down 116,488, or 11.0%, from 1.054 million a year earlier and down 7,096, or 0.75%, from the previous five-year average of 944,896.
Canada’s cattle on feed numbers have been less than the same month in 2022 and more than the 2017-2021 average through April. May was the first month in which the 2023 number was less than the five-year average. June was the second.
Total on-feed numbers should continue declining through Sep. 1, which typically is the low point of the year. There is no indication from the graph of monthly numbers whether the totals will remain below the average on the graph.
From the Sep. 1 low, on-feed numbers climb rapidly to the Dec. 1 annual high.
MAY PLACEMENTS RISE UNSEASONABLY
Canadian feedlot placements in May rose uncharacteristically to wind up being more than April, last year or the previous five-year average.
May feedlot placements totaled 117,061 head, CanFax data showed. This was down 20,093, or 20.7%, from April’s 96,968 head, 5,541, or 4.52%, less than May 2022’s 122,602, and 7,025, or 6.38%, less than the 2017-2021 average of 110,036.
It’s typical for early year feedlot placements in Canada to peak in March, which they did this year, and then decline to an annual low in July. March 2023’s placements were larger than normal, and may have been linked to extensive wildfires in western Canada.
However, CanFax gave no reason for the unusual increase.
After declining to the annual low in July, Canadian feedlot placements begin rising as pastures begin to fade seasonally. This seasonal rise to the annual high in October would be hard to avoid since the approaching winter means less and less forage is available to the cattle. Producer options would be limited.
Last year, placements made the usual high in March and the usual low in July, followed by the October peak and November/December drop-off.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $183.15 per cwt to $188.20, compared with last week’s range of $180.00 to $191.90 per cwt. FOB dressed steers, and heifers went for $289.75 per cwt to $294.46, compared with $284.05 to $299.87.
The USDA choice cutout Tuesday was down $3.23 per cwt at $336.91 while select was off $2.83 at $307.93. The choice/select spread narrowed to $28.98 from $29.38 with 103 loads of fabricated product and 19 loads of trimmings and grinds sold into the spot market.
The USDA said basis bids for corn from feeders in the Southern Plains were down $0.20 to $0.30 at $1.35 to $1.55 a bushel over the Jul corn contract, which settled at $6.43 3/4 a bushel, up $0.03 1/2.
No deliveries were tendered against Jun live cattle Tuesday.
The CME Feeder Cattle Index for the seven days ended Monday was $222.68 per cwt, down $1.18. This compares with Tuesday’s Aug contract settlement of $232.15 per cwt, down $2.77.