The number of cattle populating Canadian feed yards on Dec. 1 was up from a month earlier, a year earlier and the 2015-2019 average, according to data from CanFax, a private market information group.
CanFax surveys its members in Alberta and Saskatchewan and shares the total on feed and monthly feedlot placement numbers with the Livestock Marketing Information Center in Denver for publication. Any other data collected is shared with members only.
ON-FEED NUMBERS HIGH
The number of cattle bellying up to Canadian feed bunks on Dec. 1 totaled 1.195 million head. This was up 73,595, or 6.56%, from Nov. 1’s 1.121 million, which up until Dec. 1 data was released was the largest monthly total so far this year.
The Dec. 1 on-feed number also was up 139,751 head, or 12.1%, from 1.055 million head a year earlier and up 196,981, or 19.7%, from the previous five-year average of 998,030.
Canada’s feedlot populations have exceeded year-earlier totals ever since Aug. 1 data was released. The general trend has followed last year and the previous five-year average all year, but failed to show the dramatic summer drawdown seen in previous years.
That suggests calves were being placed on feed that normally would have been on pasture, a market analyst said. This assumption would fit the monthly placement data as well.
NOVEMBER PLACEMENT NUMBRS DOWN
The number of feeder cattle placed into Canada’s feedlots in November was fewer than October’s, Nov. 2020 and the 2015-2019 average, which would fit the unusually large placements in June, July, August and October, the analyst said.
The November placement rate was 231,784 head, down 183,682, or 44.2%, from October’s 414,466.
It’s significant to point out that October placements are always the high point of the year as pastures decline seasonally, and calves are weaned and sent to the lots. On average, the October-to-November placement decline is 51,407 head, or 15.2%.
November 2021 placements were down from a year ago’s 263,643 head by 31,859, or 12.1%, and were down from the previous five-year average of 286,363 head by 53,579, or 18.7%.
Because of the stark differences in the seasons in Canada versus the US, seasonal moves in cattle placements and on-feed numbers are more predictable than in the US where some parts of the country see much smaller changes in seasonal weather conditions.
Therefore, it is easier to predict that December placements will be down sharply from November. December and January usually are the second and third lowest placement months, led by July.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $137.09 to $137.57 per cwt, compared with last week’s range of $140.00 to $142.17. FOB dressed steers and heifers went for $218.04 to $218.08 per cwt, versus $219.83 to $221.74.
The USDA choice cutout Monday was down $0.63 per cwt at $262.38, while select was up $2.39 at $250.67. The choice/select spread narrowed to $11.71 from $14.73 with 79 loads of fabricated product and 15 loads of trimmings and grinds sold into the spot market.
The USDA reported Monday that basis bids for corn from livestock feeding operations in the Southern Plains were up $0.05 at $1.35 to $1.45 a bushel over the Mar futures and for southwest Kansas were unchanged at $0.40 over Mar, which settled at $5.91 a bushel, down $0.02 1/4.
No delivery intentions were posted against the Dec live cattle contract Monday.
The CME Feeder Cattle Index for the seven days ended Friday was $160.70 per cwt down $0.34. This compares with Monday’s Jan contract settlement of $159.22 per cwt, down $1.02.