A recent report from Rabobank shows dryness in the south is pointing towards tightening of beef supplies. The Rabobank Beef Quarterly report shows beef cow slaughter numbers are up ten percent through mid-April from a year ago, driven by ongoing dry pasture conditions, and the likelihood of forced herd liquidation during the coming grazing season, as reported by meat industry publication Meatingplace. Beef production and consumption are both increasing, adding some building pressure on the world’s major beef markets, along with the potential of a drought year in the United States. The limited grazing opportunities in the U.S. forced cattle into feedyards quicker, driving up the number of cattle on feed between September and February. Western Oklahoma remains in an extreme drought, according to the latest U.S. Drought Monitor, along with much of Western Texas classified in a severe drought.
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