Canada’s cattle-on-feed numbers continued to hold at higher levels than last year or the 2016-2020 average, according to CanFax data compiled and released by the Livestock Marketing Information Center in Denver.
CanFax, a private market advisory firm, surveys its members in Alberta and Saskatchewan monthly, and the data is compiled by the LMIC. Only the total on feed and the monthly placement numbers are released. The rest remains proprietary.
ON-FEED NUMBERS UP
The number of cattle in Canadian feedlots on April 1 was 1.109 million head, up 14,349, or 1.31%, from 1.094 million a month earlier, the LMIC said. That’s a similar month-to-month gain as the five-year average of 11,478, or 1.21%.
What’s more, this April’s total was more than the April 1, 2021, total of 1.011 million by 97,742, or 9.97%, and up from the 2016-2020 average of 962,941 by 145,625, or 15.1%.
This year’s trend of holding roughly to the five-year average monthly directional move but at a higher level, continued last year’s. In 2021, the number of cattle on feed in Canada was larger than the average, although the month-to-month directional changes were similar.
It is common for cattle on feed numbers in Canada to hold within a narrow range from January through April 1 or May 1. However, after May 1, at least, the numbers begin to fall away toward the Sep. 1 low as pastures go through their summer growth cycle.
After that, feedlot numbers grow quickly as pastures go dormant.
PLACEMENTS NEAR YEAR-AGO, AVERAGE
The number of cattle placed into Canadian feedlots in March totaled 188,861 head, the CanFax survey found. This was up 49,315, or 35.3%, from February’s 139,546 head.
March placements also were up from last year’s 171,225 head by 17,636, or 10.3%. They also were up from the 2016-2020 average of 169,879 by 18,982, or 11.2%.
Monthly Canadian feedlot placements trend higher through March and then fall away to the July low as pastures green up and become available for grazing. As pastures begin going dormant in mid-summer, placement rates increase to the October high.
This year’s March feedlot placements, while more than last year or the previous five-year average, were near enough to not be out of line. The average spring/summer downtrend likely will continue this year.
The only thing that could change it is if the 2021 drought continues this year, an analyst said. Seasonal changes in Canada are very dependent on the weather, and unusual things like last year’s drought are just about the only things that can alter the norm.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $141.48 to $142.00 per cwt, compared with last week’s range of $137.84 to $141.52. FOB dressed steers, and heifers went for $217.03 to $219.93 per cwt, versus $216.67 to $220.09.
The USDA choice cutout Tuesday was down $1.15 per cwt at $269.93, while select was off $0.25 at $259.21. The choice/select spread narrowed to $10.72 from $11.62 with 73 loads of fabricated product and 29 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 $1.50 to $1.60 a bushel over the May futures and for southwest Kansas were unchanged at $0.10 over May, which settled at $8.04 a bushel, down $0.09 1/4.
No live cattle contracts were tendered for delivery Tuesday.
The CME Feeder Cattle Index for the seven days ended Monday was $154.49 per cwt down $0.13. This compares with Tuesday’s Apr contract settlement $156.65, up $0.87.