Pasture conditions over most of the U.S. are much improved over conditions at this time last year. In addition, corn prices are currently below $4 per bushel and expected to drop further. Extreme drought conditions continue in parts of the southwestern U.S.

Production forecasts for the corn and soybean crops to be harvested this fall indicate the potential for ample feed supplies. As a result, corn prices are declining. The recent rains have also improved pasture conditions in most of the northern half of the U.S. Despite recent improvements, most of the Southern Plains, Southwest and West remain under serious drought conditions.

Precipitation in the Southern Plains recently could lead to reduced cow slaughter for the remainder of the second quarter and beyond if there is sufficient follow-up precipitation. However, as welcome as was the precipitation, it was well short of that needed to break the drought in the Southern Plains, Southwest and West.

Soil-moisture conditions in the Southern Plains have continued to deteriorate, and drought-affected areas appear to be expanding northward.

Drought continues to parch most of the West and Southwest U.S. and appears to be spreading farther east and north into the Southern and Central Plains.

Recent rains in the Southwest, especially in California, have been generally welcomed by the agricultural sectors – despite flooding and mudslides – but have not been sufficient to break the region’s drought.

Producers have good incentives to increase the national cow herd, and expansion, which has been stymied by drought the last several years, may now be under way.

The extreme cold weather across much of the cattle areas of the continental U.S. disrupted meat processing and livestock movements to slaughter and has had a negative impact on cattle body maintenance and gains.

In wrapping up 2013 and moving into 2014, we see a number of factors that have developed into pluses for the livestock sectors.