Friday’s report is anticipated not only for the information that enables market analysts to estimate slaughter cattle supplies, but also because the January report was unpublished due to the government shutdown.
A weather pattern known as La Nina created drought conditions, and subsequent wildfires, across the U.S. Great Plains has faded, But its weather cousin, El Nino, may develop, according to the Climate Prediction Center.
Unless yields soar to never-before-seen highs, the United States this summer will certainly harvest the smallest corn crop in three years since the production volume may not be padded by a boost in plantings.
Anecdotal evidence and supply observations suggest packers have recently had a negotiating advantage over feedlots. Packer margins continue to be wide and the supply of cattle on feed continues to be high.
Kansas is currently has 81.77% of land classified as D1 Moderate by the U.S. Drought Monitor. The recent dry-spell has led Governor Jeff Colyer to declare a drought designation to aid farmers and ranchers.