Drought Intensifies Along with Impact on the Cattle Market: Setting up Like 2013-16?
By Michelle Rook, AgWeb
July 29, 2022
The latest Drought Monitor roughly 70% of the U.S. is in some level of drought and that area encompasses much of cattle country.† However, producers and market analysts say this drought is much different than in the recent past.† So, while the impact on the cattle market is already being felt, it could intensify in the next few months.†††
The cumulative effect of the drought over the last few years is finally coming to a head especially for cattle producers and itís intensified the last few weeks with the extreme heat and dryness.† Producers are running out of forage supplies and hay stocks are down 7-percent nationally and facing record high prices.† And thatís much different than the drought a decade ago.
Oklahoma State University Extension Livestock Marketing Specialist Darrell Peel, says, ďThereís just no place anywhere in the country thatís got any excess hay supplies.† And so I think thatís gonna limit what we can do in terms of sourcing hay.† Its gonna limit what we can do in terms of relocating some cows compared to the last drought."
As a result, Peel says female liquidation recently picked up pushing down cull cow prices.† Year to date beef cow slaughter is up 14%, while inventory is down 2.4% and well off its high.† "And from that 2018 peak we are down about 6.3% on beef cows at this point in time."†
And unfortunately Peel says thereís no relief in sight in the latest 90-day outlook...
more, including video report [2:05 min.]††