Meat Processing Plant Shutters, Wheat Production Outlook, El Niño Predicted

Tyson Foods shut down its beef processing facility in Joslin, Illinois, last week, removing capacity to process about 3,000 head of cattle each day. The closure means cattle feeders who relied on the plant will have to find other processing options, potentially adding transportation costs and longer hauls. The timing is especially significant because the U.S. cattle herd remains historically tight. Producers are also watching whether reduced processing capacity could weaken the competition for cattle. World Agricultural Outlook Board Chair Mark Jekanowski has the global outlook for wheat production and supply and demand estimates for this month.

A fairly sharp reduction in the European Union

production estimate. We lowered it by 1.8 million tons this month, just reflecting that very hot and dry weather that spread kind of across the entire EU region over the summer. A lot of that stream heat hit right during grain filling stage for wheat, so that is showing up as reduced yield potential. So with a 1.8 million ton reduction in the forecast this month, that would bring EU's wheat production forecast down to 134.2 million tons, down just about 11 million tons from last year. We reduced our wheat export forecasts for both Russia and Ukraine this month.

And, we could potentially see a historic El Nino event in the U.S. That means winter storms shifting south and a warmer winter overall.