Canada’s Nov. 1 monthly cattle-on-feed numbers rose seasonally and remained greater than last year and the 2017-2021 average as placements increased.
The data came from CanFax, a private market advisory group. CanFax surveys members in Alberta and Saskatchewan and shares survey results for placements and total on-feed numbers with the Livestock Marketing Information Center in Denver. The rest of the information CanFax collects, it shares only with members.
ON-FEED NUMBERS RISE
As of Nov. 1, Canadian cattle feeders had 1.099 million head of cattle on feed. This was up 177,219, or 19.2%, from 921,390 on Oct. 1, up 30,513, or 2.86%, from 1.068 million a year ago and up 152,820, or 16.2%, from the previous five-year average of 945,789 a year earlier.
Canada’s cattle-on-feed numbers rose above last year in the Sep. 1 count and remained elevated in October and November. They were more than the 2017-2021 average in all monthly reports except May and June.
If on-feed numbers hold to seasonal tendencies, they should rise again for the Dec. 1 census.
The Nov. 1 US Cattle on Feed report is scheduled for Friday, but as of Oct. 1, the US count was 11.580 million head, up about 1% from the Oct. 1, 2022, total of 11.509 million.
PLACEMENTS ALSO UP
October feedlot placements in Canada also rose and likely were the largest monthly movement of cattle into feedlots for the year.
During the month, Canadian feedlots placed 357,709 head of younger cattle on feed, up 90,400, or 33.8%, from 267,309 a month earlier, down 10,114, or 2.75%, from 367,823 a year earlier and down 12,598, or 3.40%, from the previous five-year average of 370,307 head.
October is the month where the largest numbers of cattle come from pastures to feedlots. By that time, grasses have gone dormant and lost their nutritive value. Cattle must be moved to feedlots or fed hay through the winter.
As a result, most are sold to feedlots.
By November and December, the supply of feeder cattle has dwindled, and feedlot placement numbers plummet.
Canada’s monthly placement numbers vacillated around the 2017-2021 average through May. But by June, they were more than the average and remained so until October. If seasonal tendencies hold, placement numbers should decline rapidly in November and December as the number of available feeder cattle drops seasonally.
January’s placement numbers also should be very close to December’s.
The Oct. 1 US feedlot placement number was 2.206 million head, up about 6% from 2.080 million a year earlier.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $185.00 per cwt to $187.95, compared with the previous week’s range of $183.70 to $187.04 per cwt. FOB dressed steers, and heifers went for $290.71 per cwt to $293.89, compared with $290.70 to $293.67.
The USDA choice cutout Friday was up $1.04 per cwt at $300.46 while select was down $2.00 at $267.42. The choice/select spread widened to $33.04 from $30.00 with 118 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 unchanged at $1.35 to $1.45 a bushel over the Dec corn contract, which settled at $4.64 a bushel, down $0.04.
The CME Feeder Cattle Index for the seven days ended Thursday was $235.42 per cwt, down $1.59. This compares with Friday’s Nov contract settlement of $229.72, up $0.72.