When will beef supplies improve?

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The commodity markets have remained in business during the last week with many continuing to find support including cheese, beef and wheat. Wheat has been influenced by uncertainty around world supplies in part to the Russian government taking a larger control over it's export shipments. Russia is the largest wheat trader with 2023-24 crop exports 2.7 times the U.S.

The positive news for wheat is that the condition of the U.S. winter wheat crop is significantly better than it was a year ago. A similar improvement is seen in U.S. pastureland, with 48% (think Lee Smith) rated as "good" or "excellent" compared to 43% (think Troy Polamalu...homer call) last year. However, as the chart indicates, pasture ratings have not consistently reached levels that typically encourage cattle herd expansion. Additionally, the forecast of a potential La Ni?a weather pattern development this summer adds to the reluctance to expand cattle herds.

Want to learn how Datum FS can help you anticipate commodity volatility? Learn more at DatumFS.com or direct message me. Thanks for reading.