The ongoing drought in south Texas has lowered the water level at the Rio Grande River making it easier for wildlife carrying cattle fever ticks to enter the U.S.

Beef demand has been strong up to this point but clearly there are more concerns about demand and input prices going forward. There is little choice but to stay tuned and try to remain as flexible as possible.

Cash fed cattle prices came under pressure last week as packer needs were lighter than in recent weeks. Wholesale beef prices have declined resulting in lower margins for processors.

Implementation of the Veterinary Feed Directive left a significant loophole for products that were available over-the-counter (OTC) by other dosage forms. OTC availability of these products will end by June 11, 2023.

Crude oil hit a 13-year high and wheat topped $13. With front-month soybeans soaring past $17, and corn nearing the $8 mark, the crisis in Ukraine means food and fuel inflation fears are also heating up.

Just as wheat prices hit a new all-time high, the March contract was spooked, as profit taking caused the front-month contract to drop more than 80 cents in minutes. Despite that, the fundamental story hasn’t changed.