USDA dropped feed usage by 725 million bushels in its August WASDE, and some expect the department to lower feed demand further on Wednesday.
Mother Nature continues to dictate the size of the nation’s cowherd and subsequent calf crop leading to tighter beef supplies.
Many are asking that during this drought, but if farmers wait to apply fertilizer until it rains, a major part of the benefit will be lost.
For those who can hold on for the next several months, the reduced cattle herd could mean bigger profits starting late 2013.
Water quality issues continue to worsen as drought and high temperatures increase the risk of high sulfate water.
As the weeks continue to pass without any significant rain in the Midwest, it is getting increasingly difficult to find feed for livestock.
Rabobank's "U.S. Cattle Market Update” report anticipates that any rebound in fed cattle prices will be countered by higher feed prices
Feed costs are expected to skyrocket by next year. Get the full report from AgDay.