Wetter summer weather expected; would help grain, cattle

"Drought conditions have been widespread across the United States due to the La Niña weather pattern seen in the area for the past few years, but relief could be seen soon," Jennifer Carrico reports for the High Plains Journal. She cites CattleFax meteorologist Art Douglas, who says that in about three months the La Niña weather system will transition to a weaker El Niño pattern, which likely bring relief from the drought in the Western states.

According to Douglas, "If weaker El Niño conditions develop this summer, conditions at that time could be milder through the Midwest, but drier soils in the Plains and Southwest could create feedback mechanisms that increase heat in these areas. The Northwest and northern Rockies may have the only reliable grazing into late spring and summer," Carrico reports.

If the La Niña conditions continue to keep Argentina and Brazil dry for most of the summer, demand for U.S. exports of grain and beef could increase. Corn prices could move higher in the summer, according to CattleFax market analyst Mike Murphy, who predicts an average yield of 172 bushels per acre. And if cattle exports are up, more grain will likely be needed for feed.

And if cattle exports are in demand, CattleFax analyst Kevin Good told Carrico that beef will likely stay profitable, especially if foreign demand for beef exports continues to grow.