Worst drought in 44 years in Texas damaged the wheat crop, and forces farmers to reduce livestock of cattle, as growth in demand for U.S. food pushes prices for grain and meat all the above.
As the largest producer of cattle in the U.S. state of Texas is the second largest producer of wheat. In the five months to February, the state had 12 inches of rain, which is the least since 1967, said state climatologist John Nielsen-Gammon. State for more than half the wheat fields and pastures on March 20 is rated as poor and very poor.
Drought extends to Oklahoma, Kansas and Colorado, can reduce yields in the country which is the largest exporter in the world, plus everything else excess rainfall threatens fields in North Dakota and Canada. Wheat futures in Chicago last year rose 50 percent after drought in Russia and floods in Australia affect the global supply and caused a global rise in food prices. Wholesale beef prices this week reached a record, and the total number of cattle in the U.S. in January was the lowest since 1958.
"We're probably already seeing some damage, but in the next couple of weeks, apparently, if it does not rain, we will have a major deterioration," said David Clevenger, who is artificially supplied 75 percent of its 405 acres of wheat in the state of Texas. "With these prices, we try to hold on, but so far nothing indicates the approach of rain."
"In many places in the soil very little moisture," says Nielsen-Gammon. "If there will be a continuation of dry periods, low humidity subsurface soil this summer will make us very vulnerable to drought," he said.
Last year, the U.S. Department of Agriculture issued a forecast that production (grain, approx. Mixednews) in the country may fall by 5.8 percent compared with a year earlier, as the drought forces farmers to abandon some crops.
"Days go by, and still no rain, and our potential yield is reduced," says Anderson. "At best, we get an average yield, but I'm talking about the best options. Probability is quite small. "
Farmers sell cattle to feedlots earlier than usual because of their power is not enough grass, says the executive director of the Association of Independent Texas ranchers Bill Hyman.
"The total number of goals due to the drought is likely to decrease," says Hyman.
Drought "does not allow us to increase the supply when the market is so requests," said commodities broker from Texas Brent Skaggs. "The drought has been observed for several years. While there was not enough wet year, so that we can increase the number of cattle. "