Grain, soybean trading closed Wednesday
Grain and soybean trading is closed Wednesday for the Juneteenth holiday. Trading resumes with the overnight session.
Feedlots keeping cattle on feed longer, USDA says
Feedlots are retaining cattle longer than usual on feed as packers shun common discounts on cattle above certain weights, the U.S. Department of Agriculture said in a report yesterday.
The number of cattle on feed for more than 150 days at the beginning of May reached the highest level since 2012 in view of the slow pace slaughter in the first four months of the year, the agency said.
“As a result, weekly steer and heifer carcass weights remain at record highs for this time of year,” USDA said.
Steer weights in the week through May 25 were up 37 pounds year over year while heifer weights rose 29 pounds from the same week in 2023.
It’s because carcasses are yielding about 4% more than they were at this point last year, offsetting the effects of fewer cattle, said the government.
Feeder cattle demand has remained steady with improved forage and pasture conditions, which move cattle into grazing programs rather than feeders who are slow to take placements because of high feed costs, according to USDA.
“As mentioned, the heavier cattle weights are partially mitigating the tight cattle supplies,” the agency added. “Fed steer prices have gained in recent weeks due to counter-seasonally moving wholesale prices which has improved packers’ margins, likely making them more willing to pay higher prices for these heavy cattle.”
Flooding forecast for the Southern Plains
Far southwest Kansas counties and the Oklahoma and Texas panhandles may be inundated by flooding this morning since heavy rain is pouring across the region, according to the National Weather Service.
The agency has reported that rainfall of up to 6 to 7 inches has already occurred in areas along the state line border of Oklahoma and Texas. Flooding has developed or is soon likely to begin.
Further to the north, western Kansas near the Colorado border, winds this morning will top 30 mph and large hail is in the forecast for this morning, NWS said.
Scattered thunderstorms are possible throughout the day in Central Illinois, though severe weather isn’t expected.
The rain then gives way to extremely hot weather through Tuesday, the agency said. Temperatures will reach into the triple digits tomorrow.