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The Midwest Cattleman · March 31, 2022 · P3

                     March 31, 2022   Volume 28   No. 4

            UKRAINE-RUSSIA CONFLICT AND THE                                             CATTLE INPUT PRICES SURGE
            IMPLICATIONS FOR CATTLE MARKETS                                    By Josh Maples, Assistant Professor & Extension Economist, Department of
           By James Mitchell, Livestock Marketing Specialist, University of Arkansas     Agricultural Economics, Mississippi State University
                                                                              The Russian invasion of
         I want to start by recogniz-                                       Ukraine has led to far-reach-
      ing that what is happening in                                         ing impacts on commodity
      Ukraine is a humanitarian                                             markets across the globe. In
      crisis. I do not want to over-                                        particular, oil and grain pric-
      look those important aspects                                          es have surged which contrib-
      of the war in Ukraine.  That                                          utes to increases in the cost
      said, I am not a geopolitical                                         of production throughout the
      expert or war strategist. Many
      well-informed individuals can                                         cattle and beef supply chain.  2022 CME corn futures con-
      offer you a better perspective     markets  are  the  main  focus.    Feeder cattle futures prices  tract closed last week near
      on those issues.                   Fertilizer is another big one.     have dropped roughly $10 per  $7.50 per bushel. Higher corn
         In this article, I want to      There  are  also  domestic  beef   CWT since mid-February de- prices generally put pressure
      discuss the far-reaching im-       demand concerns that we need       pending on contract (though  on feeder cattle prices since
      plications of the Ukraine war      to discuss. Cattle markets are     prices were higher in today’s  feeder cattle and corn are two
      for cattle markets. Inflation,                                                                          primary inputs into producing
      grain markets, and energy                       continued on page 10    Near term corn prices have  fed cattle. Contracts expiring
                                                                            jumped by around a dollar per  further in the future have also
                                                                            bushel in the past few weeks.  increased though not at the
           U.S. BEEF EXPORTS CONTINUE STRONG                                Shown in the chart, the May                     continued on page 12
         Coming off a record-break- to $1.03 billion.  This was               HAY, FEED, FENCING SUPPLIES NEEDED TO
      ing performance in 2021, U.S.  the third-highest value total                 SUPPORT TEXAS WILDFIRE VICTIMS
      beef exports remained red- on record, trailing only  Au-                 WILDFIRE IN EASTLAND COMPLEX BURNS MORE THAN 45,000 ACRES
      hot in January, according to  gust  and  November  of  last             Texas wildfire donations  Animal Health Commission,
      data released by USDA and  year.  Export  value  per  head            of hay, feed and fencing sup- Texas           Department         of
      compiled by the U.S. Meat  of fed slaughter set a record,             plies are needed to  support  Agriculture  and  Texas  and
      Export Federation. Beef ex- exceeding $500 for the first              those impacted by the dev- Southwestern Cattle Raisers
      ports totaled 119,066 met- time.                                      astating Eastland Complex  Association are coordinating
      ric tons, up 13% from a year          Export value to South           wildfires  that  have  already  efforts through the combined
      ago, while value soared 57%  Korea was record-high as                 burned more than 45,000  efforts             of   agencies     and
                                         well, topping $300 million.        acres in Texas.                   industry partners.
                                         Strong  year-over-year  in-          The Texas A&M AgriLife             The ongoing wildfires, fu-
                                         creases also were achieved         Extension      Service    along eled by dry, windy conditions,
                                         in China/Hong Kong, Japan,         with Red Chain Feeds, Texas  have covered 46,768 acres
                                         Taiwan, the Caribbean and                                            spanning Eastland County.
                                         Central America.                                                        “These donations will go
                                         KLA                                                                  directly to those who need
                                                                                                              them  as soon  as possible,”
                                                                                                              said Monty Dozier, Ph.D.,
       DROUGHT’S IMPACT ON COW INVENTORIES                                                                    AgriLife Extension director,
                      IN THE CENTRAL PLAINS                                                                   Disaster Assessment  Recov-
                                By Greg Henderson                                                             ery, Bryan-College Station.
                                                                                                              “Texans are known for their
         According to a recent re- of drought since 2012, the
      port from the US Drought  year when the continental                                                                   continued on page 10
      Monitor,  more than 61%  of  US saw an all-time record of
      the contiguous US is in some                    continued on page 12                                   Coming Sales-30
      classification    of    drought.
      When compared to a map                                                                                 Life is Simple-5
      of beef cow inventories, the                                                                           Market Report-8
      drought is affecting roughly                                                                           Agribusiness
      80% of the nation’s herd.                                                                              Directory-28
         The current drought mon-
      itor shows the largest por-
      tion of the country in a state
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