Continuing a seasonal decline, the number of cattle on feed in Canada on July 1 was fewer than a year earlier and the 2019-2023 average.
Monthly feedlot placements in June, however, were up from a year earlier while remaining down from the previous five-year average.
The data comes from Canfax, a division of the Canadian Cattle Association. Canfax collects its information from CCA members in Alberta and Saskatchewan and shares data about the total number on feed and the monthly placements with the Livestock Marketing Information Center in Denver.
ON-FEED NUMBERS DECLINE
The number of cattle populating Canada’s feedlots on July 1 was 862,080 head, down 43,431, or 4.80%, from 905,511 a month earlier, down 9,026, or 1.04%, from 871,106 a year earlier and down 73,673, or 7.87%, from the 2019-2023 average of 935,753.
The USDA’s report for the number of cattle in US feedlots on July 1 is scheduled for release this afternoon at 3:00 ET, but the last report for the June 1 inventory of feedlots with a 1,000-or-more-head capacity showed 11.442 million head on hand. This was up less than 1% from 11.376 million a month earlier but down about 1% from 11.583 million a year earlier.
Typically, Canadian feedlot populations will continue declining toward the Sep. 1 annual bottom. From there, they will rise rapidly to the Dec. 1 annual high.
PLACEMENTS ALSO DECLINE
Part of the reason for the Canadian on-feed inventory to have a strong seasonal tilt to the Sep. 1 bottom is the Canadian climate and its effect on forage availability. Placements usually decline toward a July bottom and rise from there to an annual top in October.
That corresponds to a decline in pastures as they go dormant or are covered with snow in the winter. There simply must be removed from pastures and ranges and put into Canadian or US feedlots.
Canfax data puts June Canadian feedlot placements at 92,914 head, down 5,391, or 5.48%, from 98,305 a month earlier, but up 9,628, or 11.6%, from 83,286 a month earlier and up 752, or 0.82%, from the previous five-year average of 92,162 head.
US placements in May totaled 1.886 million head, up from 1.613 million in April but down from 2.046 million a year earlier, the USDA said.
Typically, monthly Canadian feedlot placements will bottom in July and rise rapidly to the annual high in October, whereupon it will fall in November and December. December’s feedlot placements will rival July’s low rate, and in many years could even be lower.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $230.88 per cwt to $241.02, compared with last week’s range of $229.17 to $241.74 per cwt. FOB dressed steers, and heifers went for $361.69 per cwt to $369.83, compared with $350.68 to $378.64.
The USDA choice cutout Thursday was up $0.57 per cwt at $368.09 while select was up $1.61 at $347.00. The choice/select spread narrowed to $21.09 from $22.13 with 110 loads of fabricated product and 19 loads of trimmings and grinds sold into the spot market.
The USDA-listed the weighted average wholesale price for fresh 90% lean beef was $418.36 per cwt, and 50% beef was $253.74.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.45 to $1.60 a bushel over the Sep corn contract, which settled at $4.01 3/4, up $0.03 1/4.
The CME Feeder Cattle Index for the seven days ended Wednesday was $326.18 per cwt, down $1.26. This compares with Thursday’s Aug contract settlement of $328.90, down $2.62.