Based on the most recent U.S. Drought Monitor data, the impact of drought continues to be a theme into the new year even as rains bring relief to beef cattle producers in parts of the West.

In addition to setting a global value record with one month to spare, U.S. beef exports also set annual value records in several individual markets.

Beef production forecast for fourth-quarter 2022 is raised by 70 million pounds on higher expected total cattle slaughter, along with slightly heavier carcass weights. Total 2022 beef production is projected at 28.4 billion pounds, an increase of nearly 2% from 2021.

U.S. beef production is poised to end 2022 with another record in total output, as January through October federally inspected slaughtered beef hit 23.25 billion pounds – a 1.9% increase over the same 10-month period from 2021’s record production.

Export volume of U.S. beef ran at a higher pace in October 2022 than one year ago, while export beef value kept rolling toward a record pace for the year. 

Beef cattle producers continue to face widespread drought and higher operating costs as the holidays approach.

The U.S. beef sector continues to see drought conditions impacting the movement and timing of cattle placement in feedlots, as well as the number of beef cows culled, which will likely continue into early 2023.

The latest USDA Cattle on Feed report pegged the Oct. 1 cattle on feed inventory at 11.45 million head, down 0.9% year over year. This is the first year-over-year decrease in the monthly on-feed inventory since December 2021.

New-crop corn futures have steadily increased over the past two months. Thus, there is not any relief in sight for higher feed costs. With higher interest rates, the cost of storage becomes a larger concern. 

In this episode, Paul visits with Dave Nichols, an emeritus professor at Kansas State University about his experiences as a livestock judge and educator, discussing opportunities to bridge the gap between agriculture and consumers. David also visits with K-State ag economist Ted Schroeder about the changing elements in the cattle markets, and the potential pitfalls of mandating cash cattle markets. David, Paul and Carrie also share a preview of the November issue, and share what they're grateful for this Thanksgiving season.