According to the latest Oklahoma drought monitor report, exceptional drought and extreme drought remain at zero percent, unchanged from the start of the calendar year.

Severe drought or worse is now at 1.03 percent, slightly down from last week’s 1.20 percent.

Moderate drought or worse is now at 20.48 percent, slightly down from last week’s 20.82 percent.

Abnormally dry or worse conditions are now at 52.12 percent, up from last week’s 37.17 percent.

Our neighbors in Kansas continue to have more drought covering their state than Oklahoma- 60.8% of Kansas is abnormally dry or worse- up from 55% a week ago. The Moderate Drought or worse status actually improved in Kansas- dropping four percentage points this week versus last to 28%- a year ago- Kansas was suffering 85% in D1 or worse.

Texas also has about one fourth of their state in moderate drought or worse- at 25% this week- a drop from 29% from a week ago.

Oklahoma AgCredit supports rural Oklahoma with reliable and consistent credit, today and tomorrow. We offer loans for land, livestock, equipment, operating costs and country homes (NMLSR #809962) to farmers, ranchers and rural businesses across 60 counties. As a cooperative, we are owned by the members we serve. Through our Patronage Program, we have returned more than $74 million to our members since 1997.

For more information on our services or to find a location near you, visit our website here. 



Lance Zimmerman says Heifer Retention is the Next Step in Stabilizing Cattle Markets

In this episode of Beef Buzz, I am visiting with senior beef and cattle market research analyst at Rabo AgriFinance, Lance Zimmerman, about midterm movement in the beef markets. He said that although April and May retail prices were just short of $8 per pound, a record high, beef demand has held up exceptionally well. While higher prices were expected this year, most thought it would be because supplies were going to be down.

Certain aspects of supplies are behaving as expected, slaughter being the main one. From a year-to-date, year and a half to slaughter is down about a percentage point. Beef cow slaughter is down 17% year to date in the weekly data, and total cow and bull slaughter, including dairy cows and bulls, is down similarly at 15% to 16%.

Zimmerman explained how producers have offset those declines with increases in carcass weights, saying, “Although steer carcass weights should be at their seasonal lows, right now, and perhaps they are for the second quarter, they are well above the lows we entered in late January and early February after some of those winter storms, and about 20 pounds plus above where we were a year ago.”

The reason weights are higher is because of the spread between the fed cattle market and the current cost to gain in feed yards is incredibly wide. The feed yard has every incentive in the world to keep feeding the cattle they have longer. The opportunity to bring new placements into the feed yards at a guaranteed profit, based on where the futures market is today, is a tough sell. Bringing new placements in this summer and looking to market them later this winter is risky.

Dangerous Heat Conditions on Tap for this Weekend

Even though it is summer in Oklahoma, extreme heat has settled in much earlier than we had hoped. According to State Climatologist Gary McManus, “There’s a natural order of things in weather and climate that even Mother Nature tends to follow here in Oklahoma. Not always, of course. That’s where we get extremes. Extremes, like yesterday, upend the normal order of things and cause problems. We usually get a ramp-up of the heat over June into July that allows some acclimation. Not that there’s really too much acclimation to 117 degrees, but when it’s suddenly hitting the heat index maps after just a few days of oppressive heat, it’s all the more dangerous.”

So even while most Oklahomans are used to the summer heat, McManus says extreme this early is not a normal occurrence. McManus said this is an extreme for June, and it is dangerous to the health and safety of Oklahomans. We have already seen excessive heat watches start to pop up across the state, “NWS Tulsa already has part of its region in an Excessive Heat Watch for tomorrow, and expect much of the state to follow suit for Friday.”

McManus says we may also see some thunderstorms pop up across the state with the possibility of hail and high winds, “All this heat and humidity should continue generating some storms over the next few days..."

This week on SUNUP is Oklahoma State University Extension grain market economist Kim Anderson. During this week’s edition, Anderson talks about the latest in the crop markets.

The world wheat market is around 40 to 45 percent complete at this time which speaks for strong production outcomes. Wheat prices could easily see an increase in the coming months. Russia’s wheat harvest is down to 2.9 billion bushels from January/February’s 3.4 billion which helps out on wheat prices.

Anderson said, “We came in June 1 around $6.65, and we’ve peaked out around $6.85 in mid-May. Now, at the end of June, we are down to around $5.35, so they’ve gone down. The average harvest price for Oklahoma is $5.85. That is June, July, and August. We’ve averaged that since 2009.”

Anderson advises wheat producers to have a mechanical strategy and move it in the market over time.

While India harvested a record crop this year, reports indicate a supply problem with wheat. Norway plans to build stocks. Wheat harvest pressure hasn’t ended, yet, but market indicators should mean increased wheat prices.

United States inventory of all hogs and pigs on June 1, 2024, was 74.5 million head. This was up 1% from June 1, 2023, and up slightly from March 1, 2024, USDA NASS reported on Thursday. Click here for the complete report.

Breeding inventory, at 6.01 million head, was down 3% from last year, and down slightly from the previous quarter.

Oklahoma breeding sow numbers grew by two percent compared to a year ago- with the state now home to 480,000 sows- the sixth largest state in the US in breeding hog numbers. Many of the weaned pigs produced by Oklahoma farmers are shipped north into the corn belt where feed supplies are more plentiful. Total hog numbers in the state as of June first was five percent smaller than June of 2023 at 2.08 million head- making the state the tenth largest total hog inventory state in the US.

Pollinators Support Agriculture Profitability

Pollinators improve the quality and quantity of farmers’ crop yields, adding an estimated $18 billion in crop production revenue annually. While honey bees are the most common commercial pollinator in the U.S., pollinators also include birds, bats, lizards, rodents, moths, butterflies and other insects. Pollinators are vital to pollinating more than 100 commonly grown crops. Additionally, pollinators are crucial elements within healthy and biodiverse ecosystems. However, as significant pollinators are to our ecosystems, their numbers continue to decline. 

Pollinator species are at risk because of a variety of factors including a changing climate, pesticides, pathogens and land use change. With funding from a number USDA’s National Institute of Food and Agriculture programs including both competitive and capacity programs, Land-grant Universities across the nation are working together to improve habitats and protect pollinators. 

CAB Insider: Packer Margins Back in the Black

Last week’s federally inspected cattle harvest came in a bit larger at 620,000 head, the largest sum since the week of April 29. June, however, tends to be one of the largest harvest months of the year so this uptick is within seasonal expectations. 

Analyst estimates of packer margins are indicating returns in the general range of plus $20/cwt. in recent days. This is a good sign for the supply chain, regardless of sector, given the importance of profitability to incentivize throughput with record-heavy carcass weights.

Fed cattle prices have been exciting lately as Nebraska and Iowa prices have topped the market in the $199/cwt. range on a live basis over the past two weeks. This level is a feature of a region that’s running short on market-ready cattle supply.