Western US Very Dry; Production Capabilities Questioned

The weekly drought monitor map shows large portions of the western half of the contiguous 48 states to be experiencing exceptional drought conditions currently, calling into question cropping and livestock-producing capabilities this year.

The US Drought Monitor is produced through a partnership between the National Drought Mitigation Center at the University of Nebraska-Lincoln, the US Department of Agriculture and the National Oceanic and Atmospheric Administration.

 

WEST REMAINS DRY

 

Much of the West remained dry in the latest week.  Where precipitation did fall, in the Pacific Northwest and the Northern Rockies, it either missed the drought-inflicted areas or wasn’t enough to overcome shortages.

The only exception was in north-central Wyoming and southern Montana, where recent snowfall lessened precipitation deficits and improved streamflow and soil moisture resulting in a one-category improvement to drought.  In eastern Washington, D0 (abnormally dryness), D1 (moderate) and D2 (severe) drought expanded as precipitation deficits continued to increase, drying out soils and lowering streamflow.

Conditions once again deteriorated in Oregon with expansions in D2, D3 (extreme) and D4 (exceptional drought).  The warm, dry winter added to deficits that had been in place for more than a year, leaving soils extremely dry and limiting runoff.

Crop condition reports that counties in the D3 and D4 regions are “heading into their worst water year ever for irrigators with the potential for large amounts of acres left fallowed.”  Similarly, drought also expanded in Idaho where a lack of precipitation for almost two months limited runoff, resulted in earlier-than-normal snowmelt and put short-term precipitation below the 10th percentile at many locations.

Drought conditions also expanded in northern and central California.  Another week without rain continued to build upon longer deficits.

Extension agents note that the majority of the season’s creeks aren’t flowing and that stock ponds are still dry.  Decreases in water allocation and reduced or negligible forage are causing producers to respond by culling and selling herds.

Drought conditions are also prompting Cal Fire to bring in fire crews earlier in the season.

 

OTHER CHANGES

 

Other recent changes include an expansion of D1 in western Wyoming, and D1, D2 and D3 in eastern Montana reflect the lack of precipitation over the last two to three months.

In the Southwest, D4 was expanded over southeast Arizona as more hot, dry weather showed its effect on streamflow, soil moisture and vegetation.  High temperatures ranged from 10 to 20 degrees above normal last week, and many areas are now at record dry levels for the past 12 months.

 

CATTLE, BEEF RECAP

 

Fed cattle traded this week at $119 to $124 per cwt on a live basis, down $1 to $2 from last week.  Dressed-basis trading was at $195 per cwt, down $1 to up $2.

The USDA choice cutout Thursday was up $2.20 per cwt at $280.46, while select was up $1.41 at $271.88.  The choice/select spread widened to $8.58 from $7.79 with 85 loads of fabricated product and 29 loads of trimmings and grinds sold into the spot market.

The USDA reported Wednesday that basis bids for corn from livestock feeding operations in the Southern Plains were unchanged at $1.05 to $1.16 a bushel over the May CBOT futures contract, which settled at $6.25 1/2 a bushel, up $0.19.

There were no delivery intentions posted against the Apr live cattle futures contract Wednesday.  None were retendered, and none were demanded or reclaimed.

The CME Feeder Cattle Index for the seven days ended Tuesday was $138.33 per cwt down $0.15.  This compares with Wednesday’s Apr contract settlement of $135.10 per cwt, down $2.47.