Canada’s cattle on feed numbers declined in May to end up on June 1 being below last year at the same time and below the 2018-2022 average and widening the difference between them.
Placements of young cattle into feedlots also was down seasonally, continuing at a lower rate than May 2023 and the previous five-year average.
The data was collected from feedlots in Alberta and Saskatchewan by CanFax, a private market advisory group. CanFax shares the on-feed total and the monthly placements numbers with the Livestock Marketing Information Center in Denver for compilation and publication on its website.
ON-FEED TOTAL DOWN
The total number of cattle on feed in Canada was 910,008 head, according to CanFax. This was down 40,380, or 4.25%, from 950,388 on May 1, down 27,792, or 2.96%, from 937,800 a year earlier and down 69,456, or 7.09%, from the 2018-2022 average of 979,464 head.
By contrast, the US had 11.583 million head on feed on June 1, compared with 11.590 million a year earlier.
Canada’s on-feed total should be coming down at this time of year as calves remain on pasture until the grass begins to go dormant for the winter. The annual low always occurs by the Sep. 1 tally, whereupon, it rises sharply to the Dec. 1 annual high.
This year’s spring/summer decline is following more closely to last year’s pace where on-feed numbers declined at a fairly steady rate through June and dropped of more steeply in July and August. However, on-feed totals have held at lower numbers than last year, since Feb. 1, dropping below the average by April 1.
PLACEMENTS DECLINE SEASONALLY
May feedlot placements in Canada were down seasonally from April’s and were below last year and the previous five-year average.
Feedlots there placed 96,698 head of calves into their yards in May, down 21,789, or 18.4%, from 118,487 in April, down 20,363, or 17.4%, from 117,061 a month earlier and down 13,549, or 12.3%, from the average of 110,247.
The US placed 2.046 million head on feed in May, up from 1.962 million a year ago.
Canada’s feedlot placements have a strong seasonal tendency to decline at this time of year, reaching an annual monthly low in July. After that, pastures begin to decline, and calves are weaned as they are brought in off pasture.
Feedlot placements begin to rise in August, peaking in October before falling to a seasonal low in December.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $192.15 per cwt to $192.42, compared with last week’s range of $190.00 to $198.30 per cwt. FOB dressed steers, and heifers went for $302.74 per cwt to $304.81, compared with $295.27 to $308.27.
The USDA choice cutout Monday was up $2.86 per cwt at $329.18 while select was up $1.91 at $306.41. The choice/select spread widened to $22.77 from $21.82 with 69 loads of fabricated product and 30 loads of trimmings and grinds sold into the spot market.
The weighted average USDA listed wholesale price for fresh 90% lean beef was $371.09 per cwt, and 50% beef was $102.78.
The USDA said basis bids for corn from feeders in the Southern Plains were $1.55 to $1.65 a bushel over the Sep corn contract, which settled at $4.07 a bushel, down $0.00 1/2.
The CME Feeder Cattle Index for the seven days ended Friday was $255.60 per cwt, down $3.00. This compares with Monday’s Aug contract settlement of $257.37, down $1.92.