Canada’s monthly cattle-on-feed numbers continue to show a seasonal decline, as they remain at lower levels than the same months last year or in the 2019-2023 average, according to CanFax, a division of the Canadian Cattle Association.
CanFax collects member data in Alberta and Saskatchewan monthly and shares the total on feed and the monthly placement numbers with the Livestock Marketing Information Center in Denver, which publishes the data on its website. Any other data collected by CanFax is reserved for its members.
SEASONAL DECLINE
The declining on-feed numbers show that marketings to beef packers are running ahead of placements, which is seasonal.
The data showed the number of cattle on feed in Canada on March 1 to be 984,443 head, down 28,557, or 2.82%, from 1.013 million a month earlier, down 30,557, or 3.01%, from 1.015 million a year earlier and down 54,557, or 5.25%, from the previous five-year average of 1.039 million.
That compares with the US cattle-on-feed total as of Feb. 1 of 11.716 million head, down 107,000, or 0.91%, from 11.823 million a month earlier, down 81,000, or 0.69%, from 11.797 million a year earlier and down 240,000, or 2.01%, from the 2019-2023 average of 11.956 million.
Unless something unusual happens, monthly on-feed numbers in Canada should slide to an annual low on Sep. 1. From there, they should rise rapidly to the annual high in December.
PLACEMENTS DECLINE
February feedlot placements in Canada not only fell behind marketings seasonally, they dropped to a point that was fewer than last year or the previous five-year average.
February feedlot placements in Canada numbered 125,972 head, down 9,081, or 6.72%, from 135,053 in January, down 14,680, or 10.4%, from 140,652 in the same month last year and down 5,761, or 4.37%, from the 2019-2023 average of 131,733.
That compares with the January US placements of 1.822 million head, up 180,000, or 11.0%, from December’s 1.642 million up 31,000, or 1.73%, from 1.791 million a year earlier but down 156,000, or 7.89%, from the previous five-year average of 1.978 million.
The decline in placements from January to February is counter-seasonal. Typically, placements rise in February, showing a seasonal peak in March.
From there, monthly feedlot placements in Canada decline to the annual low in July. After that, there is a sharp upturn in monthly placements to the October peak. Placements decline sharply in November and December.
Seasons have a greater influence in Canada than in the contiguous 48 states. Winter and summer are more pronounced, rendering pastures unusable in the winter.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $203.59 per cwt to $203.75, compared with last week’s range of $197.87 to $202.79 per cwt. FOB dressed steers, and heifers went for $313.83 per cwt to $316.75, compared with $310.41 to $321.60.
The USDA choice cutout Monday was up $2.89 per cwt at $321.16 while select was up$1.58 at $307.90. The choice/select spread widened to $13.26 from $11.95 with 84 loads of fabricated product and 20 loads of trimmings and grinds sold into the spot market.
The USDA-listed the weighted average wholesale price for fresh 90% lean beef was $381.84 per cwt, and 50% beef was $113.82.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.20 to $1.32 a bushel over the May corn contract, which settled at $4.61, up $0.02 1/2.
The CME Feeder Cattle Index for the seven days ended Friday was $283.27 per cwt, up $0.55. This compares with Monday’s Mar contract settlement of $284.62, up $2.65.