Canada’s cattle on feed on March 1 totaled 1.015 million head, down from a year earlier but more than the 2018-2022 average, according to data from CanFax that was compiled and published by the Livestock Marketing Information Center in Denver.
CanFax, a private market advisory firm, collects data from members in Alberta and Saskatchewan monthly. Most of the data is kept for members only, but the firm shares on-feed and placement totals with the LMIC for publication on its website.
ON-FEED TOTALS FOLLOW TREND
The March 1 total of 1.015 million head was down 20,000, or 1.93%, from last year’s 1.035 million but up 4,000, or 0.40%, from the previous five-year average of 1.011 million, the data showed.
In contrast, the US had 11.838 million head on feed March 1, up from 11.685 million last year but down from the previous five-year average of 11.922 million.
The 2018-2022 average of cattle on feed in Canada shows a slight monthly increase coming in the April 1 report, but the increase is so slight, it would be no surprise to those looking at a graph of the data to see on-feed numbers rise or fall from March 1 to April 1.
Last year, on-feed numbers declined every month from Jan. 1 to Sep. 1, starting with more cattle on feed but dipping below trend as of April 1. It would remain below the average until Aug. 1, a position it would hold for the rest of the year, although month-to-month directionality would follow seasonal trends.
There is little doubt that monthly Canadian cattle on feed numbers will follow the seasonalities since weather and climate dictate much of producers’ decisions about the disposition of their calves. But whether the totals will remain less than last year or the previous five-year average will be shown as the year progresses.
CANADA PLACEMENTS UP
February placements of calves into feedlots totaled 140,652 head, up 33,989, or 31.9%, from January’s 106,663 head, up 12,062, or 9.38%, from last February’s 128,590 head and up 8,050, or 6.07%, from the 2018-2022 average of 132,602 head.
US feedlot placements in February totaled 1.890 million head, up 99,000, or 5.53%, from January’s 1.791 million, up 167,000, or 9.69%, from last February’s 1.723 million and up 100,000, or 5.59%, from the previous five-year average of 1.790 million.
Following seasonal trends, Canada’s monthly feedlot placements should rise in March to a peak, fall away through July then rise to an annual high in October before falling to the December low.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $188.79 per cwt to $194.57, compared with last week’s range of $185.74 to $192.95 per cwt. FOB dressed steers, and heifers went for $294.13 per cwt to $302.18, compared with $290.20 to $299.32.
The USDA choice cutout Wednesday was down $2.51 per cwt at $308.58 while select was down $1.83 at $298.43. The choice/select spread narrowed to $10.15 from $10.83 with 128 loads of fabricated product and 38 loads of trimmings and grinds sold into the spot market.
The daily weighted average USDA listed wholesale price for fresh 90% lean beef was $335.67 per cwt, and 50% beef was $104.40.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.40 to $1.55 a bushel over the May corn contract, which settled at $4.26 3/4 a bushel, down $0.05 3/4.
The CME Feeder Cattle Index for the seven days ended Tuesday was $251.27 per cwt, down $0.36. This compares with Wednesday’s Mar contract settlement of $248.05, up $0.32, and Apr’s $246.87, up $1.42.