The number of cattle in Canadian feedlots on June 1 continued a seasonal decline, although at a higher level than either last year or the 2016-2020 average, according to data from CanFax, a private Canadian consulting firm.
CanFax collects the data from member feedlots in Alberta and Saskatchewan each month and then releases the data on total numbers and monthly placements to the Livestock Marketing Information Center in Denver for compilation and dissemination. Any other data it collects is kept for the private use of its members.
NUMBERS REMAIN ELEVATED
On June 1, Canada’s on-feed numbers totaled 1.054 million head, down 26,000, or 2.41%, from 1.080 a month earlier, the report said. However, the latest total was 92,809 head, or 9.66%, more than the June 1, 2021, total of 961,191 head and 133,533 head, or 14.5%, more than the previous five-year average of 920,447.
There is an almost immutable tendency for Canada’s feedlot populations to decline into Sep. 1 and then to rise steeply to the annual high on Dec. 1. Seasonal changes govern grass supplies in Canada more than in the lower 48 of the US, where there is less of a marked difference between summer and winter.
Last year, it seemed that the Sep. 1 low would be spread out from August to October, but, true to form, the Sep. 1 total was the lowest of the year at 917,906 head.
This year, month-to-month seasonal differences show little variation from the five-year average, except that they are at a higher level. One analyst said there is no reason to expect anything different, although the annual low could be below last year’s.
PLACEMENTS HOLD NEAR AVERAGE
The higher numbers in Canada’s feedlots apparently are coming from new placements, the data showed. It’s sometimes difficult to see from a graph, but percentage changes in placement figures tell the tale of why feedlot populations are larger than last year and the previous five-year average.
The number of feeder cattle that came into Canadian feedlots in May was 122,602 head, down 14,500, or 10.6%, from April’s 137,102, but up 14,155, or 13.1%, from last year’s 108,447 and up 19,540, or 19.0%, from the previous five-year average of 103,062.
But Canadian feedlots are at a turning point. The data show a strong seasonal tendency for monthly placements to sink to a July low and then to rise to the annual high in October as pastures wane in quality and quantity.
Last year, summer placements were higher than normal because of extensive drought in major grasslands.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $143.06 to $145.09 per cwt, compared with last week’s range of $139.00 to $147.09. FOB dressed steers, and heifers went for $220.17 to $220.93 per cwt, versus $216.47 to $225.02.
The USDA choice cutout Monday was up $3.70 per cwt at $268.68, while select was up $0.22 at $245.24. The choice/select spread widened to $23.44 from $19.96 with 80 loads of fabricated product and 19 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 $1.90 to $2.00 a bushel over the Jul futures and for southwest Kansas were steady at even the Jul, which settled at $7.44 1/4 a bushel, down $0.06.
No live cattle delivery intentions were tendered Monday.
The CME Feeder Cattle Index for the seven days ended Friday was $163.09 per cwt down $0.62. This compares with Monday’s Aug contract settlement of $174.12, up $1.62.