According to the CME – Daily Livestock Report authors, the inventory of cattle in Alberta and Saskatchewan feed lots on January 1 was 5 percent below the year-ago level in CanFax’s monthly report in the middle of January.
An estimated 1.035 million head were on feed in the two provinces compared to 982,966 head last year and 1.063 million head on December 1.
The very low December placement number was the primary reason driving the reduction in feedlot numbers. Only 121,000 head were placed in December, 18 percent lower than one year earlier and the smallest for any December since 2003.
Jim Robb of the Livestock Marketing Information Center in Denver cites several factors that contributed to the small December numbers. They include falling calf and yearling prices, feedlots that were rather full due to large fall placements, a shrinking Canadian calf crop and very cold temperatures that prevented some sales and shipments.
Randy Tkachyk, a cattle producer of Sundown, also manager of the Grunthal Auction Mart, says producers are liquidating their herds in Manitoba because the prices for cows and bulls are about two times less than they were a year ago.
“They also don’t see much of a future for themselves in the cattle business, especially the smaller producers,” said Tkachyk.
While some of the breeding stock, cows and bulls coming to market, are going to larger cattle producers, 75 percent is still going for slaughter and the meat market. That’s the real proof cattle numbers are dropping big time in Manitoba, and most likely across the country.
Then on Friday, January 23, the USDA reported U.S. Cattle on Feed down 7 percent. Cattle and calves on feed for slaughter market in the United States for feedlots with capacity of 1,000 or more head, totaled 11.2 million head on January 1. The inventory was 7 percent below January 1, 2008 and 6 percent below January 1, 2007. The inventory included 7.07 million steers and steer calves, down 8 percent from the previous year. This group accounted for 63 percent of the total inventory. Heifers and heifer calves accounted for 4.10 million head, down 6 percent from 2008.
Placements in feedlots during December totaled 1.65 million, 3 percent below 2007 and 4 percent below 2006. Net placements were 1.57 million head. During December, placements of cattle and calves weighing less than 600 pounds were 425,000, 600-699 pounds were 490,000, 700 to 799 pounds were 407,000 and 800 pounds and greater were 325,000.
Marketings of fed cattle during December totaled 1.68 million, 2 percent above 2007 and 4 percent above 2006.
The disappearance of other cattle totaled 76,000 during December, 31 percent above 2007 but 14 percent below 2006.
