Page 3 - MWC 3-31-2022s

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
trading).
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
MOMENTUM
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