The number of cattle in Alberta and Saskatchewan feedlots began to decline seasonally in May but the June 1 total remains elevated, according to data from CanFax.
CanFax is a division of the Canadian Cattle Association. Each month it surveys members in the two Canadian provinces for production data. It shares the total on-feed total and the monthly placements with the Livestock Marketing Information Center in Denver, which publishes it in chart form on its webpage.
SEASONAL MOVE; UNSEASONAL TOTAL
While the move downward in total numbers of cattle on feed, Canadian cattle-on-feed numbers remain unusually high after a three-month move against the seasonal decline that lifted the country’s totals above last year and the 2020-2024 average.
The June 1 total of cattle on feed in Canada was 1.039 million head, down 20,734, or 1.96, from this year’s high last month of 1.059 million but 133,130, or 14.7%, higher than last year’s 905,511 head and 61,407, or 6.28%, higher than the previous five-year average’s 977,234.
That compares with the May 1 US cattle on feed number of 11.584 million head, up from 11.576 million a month earlier and up from 11.376 million a year earlier. The June 1 US on-feed report is scheduled for release on Thursday at 3:00 pm ET.
It is very unusual for Canadian on-feed numbers to go against the grain like they did in February, March and April. Seasonalities are built in to cattle raising and feeding operations because of the distinct seasons of the year.
Winter is such a harsh environment and long that the summer growing season is shortened. The result is a strong push in feedlot numbers up or down.
Market analysts saw low fed cattle marketings and aggressive placements over the period for the unseasonal increase. Monthly feedlot placements have been greater than they were a year ago and even the 2020-2024 average.
The Canadian fed cattle market will need to increase exports to avoid cattle price pressure, one analyst said.
PLACEMENTS DROP FROM MARCH 1 HIGH
Canadian feedlot placements in May continued their drop from the unseasonally large high in March and were near last year and the previous five-year average.
Placements in May totaled 107,040 head, down 39,024, or 26.7%, from 146,064 in April but up from 98,305 a year ago and down 192, or 0.18%, from the 2020-2024 average of 107,232.
If the seasonalities hold true, monthly placements should decline through July, after which declining pasture availability will force more placements into the October high.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $256.54 per cwt to $257.25, compared with last week’s range of $256.39 to $260.37 per cwt. FOB dressed steers and heifers went for $403.44 per cwt to $403.58, compared with $403.23 to $408.57.
The USDA choice cutout Monday was up $3.12 per cwt at $395.05 while select was up $3.69 at $376.41. The choice/select spread narrowed to $18.64, from $19.21 with 50 loads of fabricated product and 18 loads of trimmings and grinds sold into the spot market.
The USDA-listed the weighted average wholesale price for fresh 90% lean beef as $454.84 per cwt, and 50% beef was $187.74.
The USDA said basis bids for corn from feeders in the Southern Plains were down $0.02 to up $0.03 at $1.23 to $1.43 a bushel over the Jul corn contract, which settled at $4.15 1/2 a bushel, up $0.02 3/4.
No live cattle contracts were tendered for delivery Monday.
The CME Feeder Cattle Index for the seven days ended Thursday was $368.01 per cwt, down $2.09. This compares with Friday’s Aug contract settlement of $357.42, down $2.22.