Wednesday, August 31, 2022

July Agriculture Prices Received Index Down 0.1 Percent, Prices Paid Up 0.5 Percent

July Prices Received Index Down 0.1 Percent   

The July Prices Received Index 2011 Base (Agricultural Production), at 134.7, decreased 0.1 percent from June but increased 26 percent from July 2021. At 124.2, the Crop Production Index was down 1.2 percent from last month but  up 16 percent from the previous year. The Livestock Production Index, at 148.1 increased 2.2 percent from June and 38 percent from July last year. Producers received lower prices during July for broilers, soybeans, wheat, and corn but higher prices for market eggs, hay, hogs, and cattle. In addition to prices, the volume change of commodities marketed also influences the indexes. In July, there was decreased monthly movement for milk, cattle, oranges, and broilers and increased marketing of wheat, grapes, hay, and cotton.    

July Prices Paid Index Up 0.5 Percent   

The July Prices Paid Index for Commodities and Services, Interest, Taxes, and Farm Wage Rates (PPITW), at 135.6, is  up 0.5 percent from June 2022 and 13 percent from July 2021. Higher prices in July for hay & forages, feeder cattle, other services, and herbicides more than offset lower prices for nitrogen, diesel, mixed fertilizer, and feed grains. 








Monday, August 29, 2022

USDA Crop Progress Report - Corn Condition Down Slightly, Soybean Condition Unchanged Week Ended Aug. 28

OMAHA (DTN) -- Corn condition fell slightly again last week, while soybean condition held steady, USDA NASS reported in its weekly Crop Progress report released Monday, Aug. 29.

The percentage of corn reaching maturity was near the five-year average, while the percentage of soybeans dropping leaves was behind the average pace, NASS said.

CORN

-- Crop development: Corn in the dough stage was estimated at 86%, 2 percentage points behind the five-year average of 88%. Corn dented was estimated at 46%, 6 percentage points behind the average of 52%. Corn mature was estimated at 8%, near the five-year average of 9%.

-- Crop condition: 54% of corn was rated in good-to-excellent condition, down 1 percentage point from 55% the previous week and 5 percentage points below last year's rating of 60%. The current rating is the fourth lowest going back to 2000, according to DTN Senior Analyst Dana Mantini. "Wisconsin and Illinois are the best rated at 76% and 69% good to excellent, respectively," Mantini said. "Kansas is the worst, at just 22% good to excellent."

SOYBEANS

-- Crop development: 91% of soybeans were setting pods, 1 percentage point behind the five-year average of 92%. Four percent of soybeans were dropping leaves, 4 percentage points behind last year's 8% and 3 percentage points behind the five-year average of 7%.

-- Crop condition: 57% of soybeans were rated in good-to-excellent condition, unchanged from the previous week and still 1 percentage point above last year's rating of 56%. The current rating is tied for the seventh lowest since 2000, Mantini said. "Wisconsin and Illinois soybeans are the best, at 74% and 66% good to excellent, respectively, while Kansas is again the worst, at just 27% good to excellent," he said.

SPRING WHEAT

-- Harvest progress: Spring wheat harvest moved ahead 17 percentage points last week to reach 50% complete as of Sunday. That is 36 percentage points behind last year's 86% and 21 percentage points behind the five-year average of 71%.

-- Crop condition: 68% of the crop remaining in fields was rated in good-to-excellent condition, up 4 percentage points from 64% previous week and far above last year's rating of 11%. "Minnesota fell 3 points to a still-best 85% good to excellent, and North Dakota rose 2 points to 76% good to excellent," Mantini said. "Washington state is rated at 94% good to excellent."







Bureau of Reclamation, Pacific Northwest Region - Storage Reservoirs in the Upper Snake River (8/29)




Average daily streamflows indicated in cubic feet per second.
Reservoir levels current as of midnight on date indicated.

Upper Snake River system is at 25 % of capacity.
(Jackson Lake,Palisades, Grassy Lake,Island Park,Ririe,American Falls,LakeWalcott)
  
Total space available:3028341 AF
Total storage capacity:4045695 AF







Friday, August 26, 2022

Friday Market Watch - Doggish Week for Livestock, Grains Bullish, Milk Futures Strong

LIVESTOCK:

It was a tough week for the livestock complex as pressure built from multiple different angles. Next week the market could see some more pressure built as the complex looks holiday-related hiccups dead in the eye, but once Labor Day is behind the market, things should level out. The biggest fear cattle posses right now is surrounding the corn market and how much upside is withholds. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $7.37 with a weighted average of $110.25 on 4,433 head.

From Friday to Friday, livestock futures scored the following changes: August live cattle down $0.80, October live cattle down $2.20; September feeder cattle down $2.55, October feeder cattle down $3.38; October lean hogs down $2.47, December lean hogs down $1.20;

More: Friday Closing Livestock Market Update - Doggish Tones Stick With Cattle 


GRAINS:

September corn closed up 11 1/4 cents and December corn was up 14 1/4 cents. September soybeans closed up 52 3/4 cents and November soybeans were up 30 cents. December KC wheat closed up 16 cents, December Chicago wheat was up 16 1/4 cents and December Minneapolis wheat was up 13 3/4 cents. 

For the week:

September corn closed up 42 3/4 cents and December corn was up 41 cents. September soybeans ended up $1.16 1/2 and November soybeans were up 57 1/4 cents. December KC wheat closed up 35 1/4 cents, December Chicago wheat was up 34 1/4 cents and December Minneapolis wheat was up 22 1/2 cents.


DAIRY:

It has been a very good week for Class IV milk with support stemming from increasing butter and nonfat dry milk prices. Futures have increased about $3.00 in some contracts from the low 2 1/2 weeks ago. Class III futures have not moved quite that much but seem to be building a base of support. Cheese prices have not been as supportive to futures as butter price has been. Class IV futures indicate prices will remain above Class III for some time to come as Class IV futures are above Class III all through next year. There may be some limitation to the level at which Class III milk futures will increase unless cheese prices will begin to trend higher. The Pro Farmer crop tour took place this week and it showed a significant reduction of corn yields in many areas. The average yield for corn is 168.1 bushels per acre with a production of 13.759 billion bushels. This compares to USDA's estimate of 175.4 bushels per acre and a production of 14.359 billion bushels. Soybeans are estimated at 51.7 bushels per acre with a production of 4.535 billion bushels. This compares to USDA at 51.9 bushels per acre with a production of 4.530 billion bushels. This will mean higher corn prices.

More: Friday Closing Dairy Market Update - Milk Futures Close Strong for the Week


FORAGE: This Week's Hay Market (Link: Forage Fodder Blog)


OUTSIDE MARKETS:

The September U.S. Dollar Index is trading up 0.29 at 108.73. December gold is down $22.00 at $1,749.40, September silver is down $0.37 at $18.76 and September copper is down $0.010. October crude oil gained $0.54 ending at $93.06 per barrel. The DOW fell 1,008 points at 32,283 while the NASDAQ fell 498 points closing at 12,142. October RBOB gasoline is up $0.0183 and October natural gas is down $0.082.




Ag groups can intervene in gray wolf lawsuit

NCBA, AFBF and American Sheep Industry granted intervenor status to appeal gray wolf delisting.

The U.S. Court of Appeals for the Ninth Circuit ruled Aug. 24 that it will allow a coalition including the National Cattlemen’s Beef Association, Public Lands Council, American Sheep Industry Association and the American Farm Bureau Federation permission to intervene in the case Defenders of Wildlife v. U.S. Fish and Wildlife Service and defend the previous administration’s delisting of the gray wolf.

Since being listed under the Endangered Species Act in 1974, the gray wolf population has seen tremendous recovery, exceeding recovery goals by 300%. The court document notes that the “coalition’s specific interest in the litigation—ensuring the protection of livestock or compensating for its loss—differs significantly from the interests of the other parties, such as an interest in recreational hunting. Additionally, specialized knowledge is relevant to assessing the effect of state-specific hunting or agricultural regulatory schemes.”

In February 2022, U.S. District Court Judge Jeffrey White ruled that the U.S. Fish and Wildlife Service prematurely removed federal ESA protections for gray wolves in most of the lower 48 states in recent years. The decision restored protections for thousands of wolves, however, ranchers said the action was not driven by the data showing wolves have exceeded recovery goals.

Protections were previously removed for wolves in the northern Rocky Mountains, and in November 2020 under the Trump administration, FWS announced its decision to remove federal protections for gray wolves throughout the remaining lower 48 states. The decision, which took effect on Jan.4, 2021, affected gray wolves in at least 44 states, most prominently in the western Great Lakes, the central Rockies and Pacific Coast.

“Livestock producers are directly impacted by the species management decisions made by the U.S. Fish and Wildlife Service, especially when it comes to species with significant federal footprints. The decision to allow the coalition to intervene in this case demonstrates what we have known all along: livestock producers deserve to have their voice heard on delisting the gray wolf,” says Kaitlynn Glover, executive director of PLC and NCBA Natural Resources. “We look forward to engaging in this case to defend the delisting of a species that has so clearly recovered.”

“ASI is pleased with this action to allow these agricultural organizations to actively participate and seek a positive legal decision that supports our farmers and ranchers,” adds American Sheep Industry Association Executive Director Peter Orwick.

“AFBF appreciates the Ninth Circuit Court of Appeals for recognizing agriculture’s interest in defending the delisting of the gray wolf. Farmers and ranchers share the goal of a healthy and thriving ecosystem, and when the gray wolf exceeded recovery goals, it became an Endangered Species Act success story,” says American Farm Bureau Federation President Zippy Duvall. “With populations now thriving, management of the species should be the responsibility of the states, which can more effectively determine the most appropriate actions to manage gray wolf populations.”

In the decision, the Court of Appeals wrote “the district court abused its discretion by denying permissive intervention.” With intervention granted through the reversal, NCBA, PLC, AFBF and ASIA will now be full participants in the case defending the gray wolf delisting and allowed to appeal a decision from the same lower court that vacated the delisting of the gray wolf.



Thursday, August 25, 2022

This Week's Drought Summary (8/25)

Record-breaking rainfall led to aggressive improvements in drought conditions across parts of the South. The heavy rainfall and flooding led to communications outages at the National Weather Service office leaving climatologists without access to important data and tools needed to fully analyze the effect of this event. The magnitude of this event meant prioritizing improvements on this week’s map in these areas and in the Southwest, where the Monsoon season remains active. Drought expanded in the Northwest was warm, dry conditions continued across the region. The Midwest, Southeast, and Northeast saw a mix of improvements and degradations.



Northeast

Drought persisted or expanded across much of the Northeast. Vermont saw increases to moderate drought (D1) areas where rainfall deficits of near 6 inches over the last 90 days dried out soils and lowered streamflows. Likewise, drought expanded in Connecticut (moderate drought, D2) and New Jersey (moderate and extreme drought, D1 and D2) where deficits are equally impressive. Recent rains improved abnormally dry conditions (D0) in northern Maine, northern New Hampshire, and Delaware.

Southeast

Spotty, heavy rain fell across the Southeast this week leading to improvements to areas of moderate drought (D1) and abnormal dryness (D0) in the Carolinas. Rainfall of 150 to 300 percent of normal for the week erased short term moisture deficits, replenished soils, and restored streamflows. Abnormally dryness (D0) and moderate drought (D1) expanded in the Florida Peninsula where rainfall deficits continue to build. The state drought team notes below normal levels in Lake Kissimee and inflows into Lake Okeechobee in addition to dry soils and stressed vegetation.

South

This week’s storm event led to broad 1 and 2-category improvements across large parts of the South. All states in the region show improvements. Rainfall close to the data cut off time (Tuesday at 8:00 a.m. EDT), data communications issues caused by the flooding, and lags in the hydrologic system in response to rainfall events means that the full impact of this storm on drought conditions is not yet apparent. Analysis will continue next week as more data become available. A few impressive statistics include the following. According to National Weather Service records, prior to this week’s event, the Dallas-Fort Worth Area went 67 days without measurable precipitation, the second longest streak on record going back to 1898. The August 21-22, 24-hour total of 9.19 inches tied for the second highest 24-hour total. The Texas State Climatologist noted that the largest flood control rain gauge total was 15.16 inches!

Midwest

Spotty, heavy rain fell across the Midwest this week leading to a mix of drought improvement and deterioration. Moderate drought (D1) improved in western Kentucky in response to above normal rainfall over the past 30 days. Meanwhile, nearby counties that missed these recent heavy rains saw an expansion of D1. In Missouri, rainfall of 150 to 300 percent of normal for the week led to broad 1-category improvements to areas of moderate (D1), severe (D2), and extreme (D3) drought. Totals of 1 to 4 inches erased short term moisture deficits, replenished soils, and restored streamflows. Central Minnesota also saw improvements to D1 in response to recent rainfall and seasonable temperature. Illinois saw conditions improve in the east and central part of the state and expand in the west. Moderate drought increased near the Iowa border where deficits of over 5 inches over the last 90 days dried out soils and lowered streamflows. Additional analysis across the Midwest next week is likely to result in increasing drought severity across Iowa due to persistent dry weather.

High Plains

Warm, dry conditions continued across the region. Moderate drought (D1) expanded in western South Dakota and northeast Wyoming where rainfall deficits of near 3 inches over the last 90 days dried out soils, lowered streamflow, and stressed vegetation. Additional analysis across the High Plains next week is likely to result in increasing drought severity across parts of the region due to persistent dry weather.



West

An active monsoon season in the Southwest led to improvements to drought conditions. Precipitation has improved many drought indicators including soil moisture, streamflow, and well data. Moderate drought (D2) improved in northern and southern Arizona. Moderate (D2) and extreme (D3) drought improved in southern and eastern New Mexico. Extreme drought (D3) improved in Utah and Nevada. Additional improvements are expected next week as the effect of the recent rainfall continues to be analyzed. To the north, Idaho and Montana saw an expansion to abnormally dry areas. Persistent warm, dry weather is likely to lead to additional degradations as soils continue to dry and vegetation suffers.



Caribbean

In Puerto Rico, above normal rainfall across much of Puerto Rico led to 1-category improvements on the northwest, northeast, and southwest parts of the Island.

Some beneficial rain fell across parts of the USVI islands this drought week. Cyril E King Airport at St. Thomas had a total of 4.90 inches of rain for the week, with most of that rain (4.24 inches) falling in just one day (Aug 17). This gave the month-to-date total of 5.51 inches or close to twice its monthly normal. Year-to-date rainfall total at the airport was 93.4% of normal. Rainfall totals varied across the CoCoRaHs stations. VI-ST-1 had a little over 3 inches of rain, while the rest had between 0.13 to 0.80 inch of rain. Groundwater levels seemed to have been improving, but not by much. SPI values at 1, 3, 6, and 9 months were indicative of drought free conditions, while at the 12 months were indicative of moderate drought. According to the Vegetation Health Index (VHI), vegetation in the island was stressed. St. Thomas drought classification for the week was changed from short- and long-term severe drought (D2-SL) to long-term severe drought (D2-L).

In St. Croix, the Henry Rohlsen airport had 1.49 inches of rain for the week, resulting in a month-to-date of 92.7% of normal. The airport's year-to-date was 89.7% of normal. Weekly rainfall totals across the CoCoRaHs stations were between 0.34 inch to 3.23 inches. Groundwater levels continued to be low. SPI values at the 1 and 3 months were indicative of no drought, while the 6, 9, and 12 months were indicative of abnormally dry to severe drought. Vegetation seemed to be improving somewhat across the region, according to the VHI. Similar to St. Thomas, this week's drought classification for St. Croix changed from short- and long-term severe drought (D2-SL) to long-term severe drought (D2-L).

Short- and long-term extreme drought (D3-SL) persisted across St. John. The Windswept Beach station had only 0.79 inch of rain for the week, 1.12 inch (or 33.3% of normal) for the month-to-date, and 66.7% of normal rainfall for the year-to-date. Other two CoCoRaHs stations across St. John had a bit more rain at 1.36 and 1.99 inches of rain. The groundwater levels have been steadily decreasing with not much improvement. SPI values at all timescales were indicative of severe to extreme drought.

Pacific

In Alaska, abnormal dryness improved in the Northeast Interior based on input from the state monitoring team and reports of rainfall the past week.

In Hawaii, no changes were made to the map this week, but conditions look ripe for degradation next week if the dryness persists.

Palau had 1.62 inches of rain this week, which is a little less than the weekly 2-inches threshold to meet most water needs. However, drought free conditions persisted since the two previous weeks were very wet with weekly rainfall totals over 5 inches.

The Marianas had over 2 inches of rain across the region, securing another week of drought free conditions.

Rainfall varied across the Federated States of Micronesia this week. Yap, Chuuk, Pohnpei, Kosrae, Ulithi, and Woleai had over 2 inches of rain. Ulithi's drought classification was changed from abnormally dry to drought free conditions since it has had two consecutive wet weeks and drought impacts haven't been reported. Drought was not a concern for the other locations. Nukuoro and Pingelap had over 1 inch of rain. Drought free conditions persisted for these locations since month-to-date totals are above the 8-monthly threshold to meet most water needs. Lukunor and Kapingamarangi had less than 1 inch of rain for the week. Kapingamarangi's drought classification continued to be moderate drought since its month-to-date total was only 2.65 inches.

Similarly, most locations across the Marshall Islands had less than 2 inches of rain this week; however, drought free conditions persisted across all islands since most had month-to-date rainfall totals that were above the 8-inches threshold. Kwajalein and Ailinglaplap were the only locations to surpass its weekly threshold with 4.03 and 3.48 inches of rain, respectively.

Tutuila also continued to be drought free. Pago Pago had 1.65 inches for the week, while Siufaga Ridge had only 0.15 inch of rain. However, month-to-date for both locations were above their 4-inches threshold to meet most water needs.

Looking Ahead

The National Weather Service Weather Prediction Center (valid August 25 – August 28) calls for rainfall over parts of the South, the Southwest, the Northern Rockies, Upper Midwest, and Northeast. Meanwhile, dry weather is expected to continue across the drought-stricken areas of the Pacific Northwest, California, the Central Great Basin, and Central Plains. Moving into next week (valid August 30 – September 1), the forecast calls for more rain across Texas, Oklahoma, and much of the eastern half of the CONUS. At 8 – 14 days, the Climate Prediction Center Outlook (valid September 1 – September 7) calls for above normal temperatures across the West, High Plains, Upper Midwest, East Coast, and interior Alaska. Below normal temperatures are predicted across southeast New Mexico, Texas, and Southern Oklahoma. Below normal precipitation is favored across much of the northern tier of CONUS. Above normal precipitation is favored for the southern tier, from New Mexico eastward.




Monday, August 22, 2022

USDA Crop Progress Report - Corn, Soybean Conditions Down Again

OMAHA (DTN) -- Corn and soybean good-to-excellent condition ratings both fell slightly again last week, USDA reported in its weekly Crop Progress report released Monday, Aug. 22.

Corn was rated 55% in good-to-excellent condition, down 2 percentage points from 57% the previous week. Soybeans were rated 57% in good-to-excellent condition, down 1 percentage point from 58% the previous week.

CORN

-- Crop development: 97% of corn was silking as of Sunday, Aug. 21, according to NASS, 2 percentage points behind the five-year average of 99%. Corn in the dough stage was estimated at 75%, 4 percentage points behind the five-year average of 79%. Corn dented was estimated at 31%, 4 percentage points behind the average of 35%. Corn mature was estimated at 4%, even with the five-year average.

-- Crop condition: 55% of corn was rated in good-to-excellent condition, down 2 percentage points from 57% the previous week and 3 percentage points below last year's rating of 60%. "That's the fourth lowest rating going back to 2000," DTN Lead Analyst Todd Hultman said.

SOYBEANS

-- Crop development: 97% of soybeans were blooming, even with the five-year average; 84% of soybeans were setting pods, 2 percentage points behind the five-year average of 86%.

-- Crop condition: 57% of soybeans were rated in good-to-excellent condition, down 1 percentage point from 58% the previous week but 1 percentage point above last year's rating of 56%. "That's tied for the seventh lowest rating since 2000," Hultman added.

WINTER WHEAT

-- Harvest progress: 95% of the crop was harvested as of Sunday, 2 percentage points behind the five-year average of 97%. "Northwestern states are lagging, with Idaho 40 points behind the five-year average, at just 45% completed, and Washington lagging its average by 13 points with 73% harvested," DTN Senior Analyst Dana Mantini said.

SPRING WHEAT

-- Harvest progress: 33% of the crop was harvested as of Sunday, 21 percentage points behind 41% last year and 21 percentage points behind the five-year average of 54%.

-- Crop condition: 64% of the crop was rated in good-to-excellent condition, even with previous week but far above last year's rating of 36%. " Minnesota posted an 8-percentage-point gain to 88% good to excellent, and North Dakota rose 2 points to 74% good to excellent. Montana continues to be poorly rated, at just 31% good to excellent, and was down 7 points on the week." Mantini said.







Bureau of Reclamation, Pacific Northwest Region - Storage Reservoirs in the Upper Snake River (8/22)


Average daily streamflows indicated in cubic feet per second.

Reservoir levels current as of midnight on date indicated.

Upper Snake River system is at 29 % of capacity.
(Jackson Lake,Palisades, Grassy Lake,Island Park,Ririe,American Falls,LakeWalcott)
  
Total space available:2858084 AF
Total storage capacity:4045695 AF






Friday, August 19, 2022

Friday Market Watch - Cattle on Feed Up 1%

 LIVESTOCK:

Friday's close came with some challenges for the livestock complex. Both the live cattle and feeder cattle contracts will likely be challenged on Monday as the market absorbs Friday's bearish Cattle on Feed report, and the lean hog complex will look for support in the form of strong pork cutout values. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $6.29 with a weighted average of $117.80 on 4,039 head.

From Friday to Friday, livestock futures scored the following changes: August live cattle up $1.38, October live cattle up $0.75; August feeder cattle up $1.88, September feeder cattle up $1.38; October lean hogs down $6.90, December lean hogs down $6.22; September corn down $0.14, December corn down $0.19.

Friday's slaughter is estimated at 122,000 head, 4,000 head more than a week ago and 5,000 head more than a year ago. Saturday's slaughter is estimated at 40,000. This week's slaughter is estimated at 661,000 head, 14,000 head more than a week ago and 5,000 head less than a year ago.

Boxed beef prices closed mixed: choice down $0.11 ($264.28) and select up $0.47 ($237.94) with a movement of 73 loads (41.80 loads of choice, 16.02 loads of select, 5.32 loads of trim and 9.98 loads of ground beef).

More: Friday Closing Livestock Market Update - Higher Placements Likely Means Lower Monday for Cattle


GRAINS:

September corn closed up 6 1/4 cents per bushel and December corn was up 7 1/2 cents. September soybeans closed down 6 3/4 cents and November soybeans were down 1 1/4 cents. December KC wheat closed up 31 3/4 cents, December Chicago wheat was up 22 cents and December Minneapolis wheat was up 22 1/4 cents. 

For the Week:

September corn closed down 13 3/4, with December corn down 19 cents. September soybeans closed down 46 1/4, with November down 50 1/4 cents. Kansas City September wheat closed down 44 1/2 cents, with Chicago Sep down 52 3/4, and Minneapolis Sep down 43 3/4 for the week.


DAIRY:

The action of Class III futures this week would give the impression the market was awash in milk as cheese prices fell substantially lower. Such is not the case as increased amounts of milk are moving to bottling for the school systems and the price movement of cheese for the week was mixed compared to last Friday. However, Class III futures eliminated any gains realized over the past two weeks. Milk continues to slow seasonally with hot weather still in place in areas of the country with corn silage harvest taking place or will be taking place in a few weeks. Milk production will eventually turn higher, but gains may be slow to unfold. An increase of cow numbers will be limited due to the tight supply of replacements. Growth will take place internally and will take time. Monday will be a day of reports with both the July Milk Production and July Cold Storage reports released. These reports should provide some price movement and possibly some market direction.

More: Friday Closing Dairy Market Update - Traders Turn Bearish


HAY MARKETS: Forage Fodder Blogger (link)


OUTSIDE MARKETS:

The September U.S. Dollar Index is trading up 0.610 at 108.025. December gold is down $8.80 at $1,762.40, September silver is down $0.45 at $19.02 and September copper is up $0.0255 at $3.6570.eptember crude oil gained $0.27 closing at $90.77 per barrel. The DOW declined 292 points ending at 33,707 while the NASDAQ declined 260 points closing at 12,705. September heating oil is up $0.0264, October RBOB is down $0.0210 and September natural gas is up $0.108.




USDA Cattle on Feed Report - Aug. 1 Cattle on Feed Up 1%

OMAHA (DTN) -- Cattle and calves on feed for the slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 11.2 million head on Aug. 1, 2022. The inventory was 1% above Aug. 1, 2021. This is the second highest Aug. 1 inventory since the series began in 1996.


Placements in feedlots during July totaled 1.77 million head, 2% above 2021. Net placements were 1.71 million head. During July, placements of cattle and calves weighing less than 600 pounds were 410,000 head, 600-699 pounds were 280,000 head, 700-799 pounds were 400,000 head, 800-899 pounds were 405,000 head, 900-999 pounds were 195,000 head, and 1,000 pounds and greater were 75,000 head.

Marketings of fed cattle during July totaled 1.83 million head, 4% below 2021.

Other disappearance totaled 56,000 head during July, 2 percent above 2021.

DTN ANALYSIS

And just like we assumed, analysts missed the mark on Friday's Cattle on Feed Report. Friday's COF report really amounted to focusing on one thing and one thing only -- placement data. Analysts projected that placements would be 98.8% of a year ago with estimates ranging from 95.0% to 101.3%. But Friday's report shared that placements amounted to a whopping 1,765,000 head, 2% higher than a year ago.

The states that saw the biggest increase in placements were Oklahoma, up 26% from a year ago; South Dakota, up 24% from a year ago; Texas, up 7% from a year ago; and both Kansas and Nebraska placed 2% more cattle in July 2022 than compared to a year ago. The report shared that calves weighing under 600 pounds saw a 35,000 head increase from a year ago; feeders weighing 600 to 699 pounds grew by 25,000 head compared to a year ago; the 700 to 799, 800 to 899, and 900 to 999 pound divisions of feeders fell in placements compared to a year ago; and those weighing 1,000 pounds or more grew by a mere 5,000 head compared to last year's data.

The number of cattle on feed wasn't shocking as it came in at 11,224,000, which is 1% higher than a year ago. And analysts accurately predicted the report's marketing data as cattle sold for marketing in July totaled 1,825,000 head, which is 96% of a year ago. There were fewer cattle marketed in July as there was one less slaughter day in the month than compared to a year ago.

The biggest take away from Friday's report was that our assumption was correct, placements where higher than what analysts projected as drought conditions continue to push cattle into feedlots. Nevertheless, this report will likely weigh heavily on the market come Monday, but from a long-term perspective it won't derail the market's trajectory.


USDA Actual Average Estimate Range
On Feed Aug. 1 101.0% 100.8% 100.1-101.1%
Placed in July 102.0% 98.8% 95.0-101.3%
Marketed in July 96.0% 96.9% 96.0-102.1%




Thursday, August 18, 2022

This Week's Drought Summary (8/18)

Precipitation again varied widely across the Lower 48 this week, which is not unusual during the summer. Across the interior West, monsoon rains were not as intense as last week, but remained heavier than normal. Several times the normal amount soaked most areas in the western half of the Four Corners Region, much of Nevada, southeastern California, reaching as far north as southeastern Oregon and Wyoming. Other areas receiving widespread heavy rains (and thus some improvement from recent dryness) included Deep South Texas and northwestern Nebraska. Parts of Deep South Texas recorded over 10 inches of rain, and 2 to 3 inches were common across northwestern Nebraska. Elsewhere, relatively narrow swaths of moderate to heavy rain dampened parts of the middle Mississippi Valley, Upper Midwest, and Great Lakes Region. Meanwhile, a broken pattern of moderate to heavy rain covered roughly the southeastern quarter of the contiguous 48 states. The higher amounts were in the 2 to 3 inch range though some small, highly-isolated areas recorded a bit more. In contrast, light precipitation at best fell on the Northeast, which teamed with abnormally high temperatures to induce significant and widespread intensification. Other areas observing light rain at best included part of the Upper Midwest, the north-central and south-central Plains. Conditions were seasonably dry along the West Coast.



Northeast

Despite a few small areas of moderate rain, most of the dry areas in the Northeast Region saw little or no precipitation. This prompted drought intensification and expansion westward away from near-coastal southeastern New England. Extreme Drought (D3) pushed westward across Rhode Island and toward central Massachusetts and easternmost Connecticut. The last 60 days were 2 to 5 inches below normal rainfall from Southeast New England through southeastern New York and northern New Jersey, with shortfalls of 6 inches or more noted in many locations from northeast New Jersey through southeastern New York. Subnormal rainfall extends northward and westward to the Canadian border, but conditions haven’t changed as significantly there. Farther South, dryness and small patches of drought are confined to the Delmarva Peninsula.

Southeast

Rainfall was hit-and-miss along the southern Atlantic Coastal and central Gulf Coastal states, but most sites got at least light to moderate rain (over 0.5 inch). A few patches across central Alabama and the southern Appalachians received less. Such highly variable rainfall patterns are common in summer, resulting in a mix of changes in different areas. Conditions generally improved in southern Virginia, eastern North Carolina, and central Georgia while dryness primarily intensified a bit in parts of South Carolina, adjacent North Carolina, northwestern Alabama, and southeastern Florida. Both 30- and 60-day rainfall deficits increased along the east-central and southeastern Florida coast, with the past month bringing 3 to 5 inches less rainfall than normal along the coast from West Palm Beach northward through the Melbourne area. This prompted a deterioration to moderate drought in part of the east-central Florida Peninsula, with D0 expanding westward into the Kissimmee River Valley and southward to the top of the Keys.

South

Last week’s precipitation – though variable – followed the same general pattern as the precious week. Heavy rains drenched much of the eastern reaches of the Region while lesser amounts and localized deterioration were noted farther west. On significant exception was Deep South Texas, where heavy to intense rainfall brought significant improvement to areas of abnormal dryness and drought. Amounts exceeding 2 inches were widespread south of a line from Webb and LaSalle Counties eastward through San Patricio County, and amounts of 5 to locally over 10 inches drenched areas north of the Mexican border counties. This prompted nearly universal 1-category improvements on the Drought Monitor, with small areas of 2-category improvement where rainfall was heaviest. Extreme drought (D2) or worse are now confined to areas north and west of Duvall County. Elsewhere, increasing rainfall brought additional improvement to the Lower Mississippi Valley and Tennessee, but amounts were generally below-normal from central Texas northward through Oklahoma. Enough rain fell on central and northern Texas to keep areas of deterioration small, but little rain fell from the Red River (South) into northern Oklahoma, where larger areas of intensification were observed. Broad areas of exceptional drought (D4) still cover much of a large area from the southern Texas Panhandle southeastward toward the Gulf Coast. Over the last half-year, rainfall deficits of 8 inches to locally over a foot have affected areas of central Texas near and south of Dallas/Fr. Worth to the Gulf Coast.

Midwest

Similar to the South Region, rainfall in the Midwest was hit-and-miss last week. A mix of deterioration an improvement resulted, but dryness and drought remained considerably more widespread along the western tier of states in the Midwest Region. Improvement was indicated in relatively small, scattered areas across the region while deterioration was fairly common from central Illinois and Iowa northward through most of northwestern Wisconsin. Several bands of extreme drought (D2) persist in the western tier of the Region, with small areas of extreme drought (D3) affecting northwestern Iowa and southwestern Missouri.

High Plains

Light rainfall at best fell on Kansas and farther north across the Dakotas. In contrast, heavy precipitation augmented by intrusions of monsoonal moisture covered large areas from Colorado and Wyoming eastward into western Nebraska. Dryness and drought eased in these areas, with improvement most widespread across the southern half of Wyoming and in the Colorado High Plains. Precipitation in these areas generally exceeded an inch, with 2 to 4 inches falling on several areas from southeastern Wyoming into northwestern Nebraska. Outside of the band of heavy precipitation that brought some improvement to Nebraska and adjacent areas, little or no rain fell on central and southern Kansas, and across most of the Dakotas, with South Dakota recording less rainfall than areas to the north. As a result, dryness persisted or intensified in these areas. Most of the Dakotas and the eastern tier of the Region measured near or below half of normal for the last 3o days, with several patches across the central Dakotas and southeastern Kansas receiving 25 percent of normal or less. In sharp contrast, most areas from central Wyoming through eastern Colorado and western Nebraska reported 150 to locally over 300 percent of normal since mid-July.



West

Ample rains from the North American Monsoon continued through mid-August. Seven-day totals of 1 to 3 inches – with isolated higher amounts – fell across southwestern New Mexico and Arizona northward through much of the central and eastern Great Basin, and the western half of Utah. As a result, several large areas of improvement were noted this week, with the heaviest rains and most widespread improvement covering Arizona. After an extended period of serious drought, the heavy rains have prompted broadscale improvement in monsoon-affected areas. Two-category improvements over the past 4 weeks have occurred in areas recording the heaviest rainfall. Meanwhile, drought and dryness have been changing in the opposite direction across the northern tier. Most notably, abnormal dryness and moderate drought have been expanding across central and western Montana due to deficient precipitation and well above normal temperatures, while intensification has been slower and covers smaller areas in Idaho and Washington. Most of the Pacific Coast states have been dry and periodically hot as well, but this is their dry season, so totals are not far removed from normal.



Caribbean

Conditions across Puerto Rico were unchanged, with generally moderate rains keeping conditions from deteriorating or improving.

The U.S. Virgin Islands remained at the same drought status this week with St. Thomas and St. Croix at D2-SL and St. John at D3-SL. Rain was negligible for St. John this week, while St. Croix received below-normal rain, and St. Thomas received above-normal rain. Temperatures have been above-normal for at the King Airport on St. Thomas and Rohlsen Airport on St. Croix, with both of them reaching or exceeding 90°F from August 1-14.

St. John CoCoRaHS observers reported up to 0.02 inches of rain for the week. SPIs indicated severe drought at all time scales. The Susannaberg DPW 3 well remains very low at 22.88 feet below land surface.

St. Croix CoCoRaHS observers reported 0.11 to 0.43 inches, while 0.30 inches of rain fell at Henry Rohlsen Airport. SPIs indicated moderate drought at 6 and 9 months and extreme drought at 12 months. The SPIs for one and three months were not calculated this week, but pointed toward normal conditions and abnormal dryness at those time scales last week. While the Adventure 28 well remained very low, recent rainfall brought the water level up a fraction of an inch before it trended downward again.

St. Thomas’ CoCoRaHS observers reported 0.68 to 0.84 inches for the week, while 0.30 inches of rain fell at the Charlotte Amalie Cyril E King Airport. The SPIs indicated moderate drought to extreme drought at various time scales. The Grade School 3 well is near a record low, but responded positively to recent rainfall and rose more than two feet.

Pacific

The small area of D0 in east-central Alaska persisted. This area has remained abnormally dry while most other parts of the state have seen precipitation increase. Elevated fire danger persists, even as chances for wildfire development have been declining across the rest of the state.

In Hawaii, another predominantly dry week led to fairly significant areas of drought and dryness expansion as agricultural impacts and surface moisture shortages have been ramping up, with extremely low vegetative indexes noted by satellite. This prompted the introduction of the highest drought designation (D4) in western Molokai, and drought intensifications deteriorated by 1 category in large parts of the state. Exceptions included localized heavy rains on Molokai that removed the D4 that had been there, and a somewhat longer period of above-normal rains led to the removal of D0 in southwest Hawaii Island.

The Republic of Palau received ample rain and was free of dryness.

The Mariana Islands all received plenty of rain and remained free of dryness. Rainfall exceeded 1.79 inches at all locations, which more than enough to meet minimum water needs.

The Federal States of Micronesia were mixed, in terms of precipitation, with most locations reporting more than 2 inches, which is adequate to meet water needs. Kapingamarangi remained at D1-SL and received 1.44 inches. Rainfall has been low for Ulithi in recent weeks, with just 0.84 inches this week, prompting the introduction of abnormal dryness. Pingelap and Pohnpei received the most rain with 6.95 and 8.53 inches, respectively.

The Marshall Islands were free of dryness and drought, but were mixed in terms of rainfall for the week. Jaluit, Majuro and Wotje received less than two inches, but those locations reported enough rain in previous weeks to have enough water. Ailinglaplap, Kwajalein and Mili received around 4 inches of rain.

American Samoa remained free of dryness. All locations received more than an inch of rain, which is enough to meet minimum water needs for the week.

Looking Ahead

The next five days could see heavy rainfall and improvement across a large part of northern Texas and southern Oklahoma eastward along the Arkansas/Louisiana border. Amounts of 2 to 3 inches are expected to be widespread here, with small areas south of the Texas Panhandle and in southeastern Oklahoma expecting over 4 inches of rain. Farther west, the robust monsoon looks to continue unabated. Between 2 and 4 inches are expected over southern sections of the Four Corners Region. But monsoon moisture is not expected to bring tropical moisture and heavy rainfall north of the central Rockies. Farther east, the rest of the southern tier of states are expected to get near or above an inch of rain, with bands of heavier rainfall expected in the Carolinas, southeastern Georgia and the central Gulf Coast. Much of the Upper Midwest and northern Ohio Valley should get several tenths to nearly 2 inches of rain, although the highest totals should be highly isolated. In stark contrast, little or no rain is expected over the contiguous states to the north and west of Kansas. In New England, where dryness has been intensifying rapidly, only a few tenths of an inch of rain are forecast in the areas of moderate to extreme drought along and near the I-95 corridor. Well above average temperatures will exacerbate dryness from the central Rockies northward and westward. Five-day average temperatures could exceed +9 deg. F above normal over the Great Basin and northern Intermountain West. Meanwhile, the southern tier of states – where heavy precipitation is expected – are forecast to average at least 3 deg. F below normal. Temperatures will be close to normal elsewhere, though they could sneak a few degrees above normal in part of New England.

For August 23-27, Odds favor a continuation of above normal temperatures from the Great Basin northward to Canada and westward to the Pacific Coast. In addition, enhanced chances for above-normal temperatures cover the Northeast, the eastern mid-Atlantic region, the immediate south Atlantic Coast, and Florida. Subnormal temperatures are favored from the southern half of the Rockies eastward through the central Plains, middle Mississippi Valley, lower Ohio Valley, and interior Southeast. At the same time, above-normal precipitation is at least slightly over a large area covering the desert Southwest, Intermountain West, Rockies, central and southern Plains, the lower half of the Mississippi Valley, the Ohio Valley, the lower Midwest, Appalachians, and most of the Eastern Seaboard from Georgia through southern Maine. The best chances for abnormally heavy rain extends from northeastern Texas and eastern Oklahoma northeastward through the Tennessee and adjacent Ohio Valleys.




This Week's Drought Summary (5/2)

During the late week and weekend, a large severe weather outbreak brought large hail, damaging winds and numerous intense tornadoes to parts...