Summer May Be Wetter Than Anticipated, Cattle Rally, And Consumers Aren't Feeling It

Today we start with a look at weather and potential for a turn around in drought conditions, then switch to an update on cattle markets. We end with a look at consumer confidence.

Transcript

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Hello and welcome to Chat BDC. I'm back with three more news articles around ag and financial markets. Today's Friday, May 29th, 2026. Today we're going to focus on a weather news twist, look at cattle markets, and finish with a look at consumer sentiment. So let's get to it. We're going to start off with weather news from Tyne Morgan on DairyHerd.com after months of relentless drought across much of farm country. Meteorologist Eric Snodgrass says a major weather pattern shift is underway and it could bring much needed relief to some of the driest areas of the U.S. heading into summer. I know here in Wisconsin we started off spring really, really wet, but boy, have we dried up over the last few weeks. Nearly 75% of the country remains in some form of drought, but Snodgrass says forecast models are signaling widespread rain rainfall from Texas through the Midwest and into the southeast over the next several weeks, with some areas expected to pick up several inches of rain. And while El Nino headlines continue to fuel concerns about extreme weather and even global food shortages, Snodgrass says producers should pay closer attention to ocean temperatures off the west coast than fear-driven forecasts circulating online. According to Snodgrass, a strong Bermuda high is helping drive widespread precipitation from eastern Texas through the Mississippi Valley into the Ohio Valley and southeast over the next ten days. He also points to a corridor stretching through the western Corn Belt into southern Canada that could finally see meaningful rainfall. While the immediate forecast is important, Snodgrass says the bigger question is what happens deeper into summer. He says the latest European weather models keeps much of the Midwest and Eastern U.S. wetter than normal through at least early July. As conversations around El Nino continue to dominate weather discussions, Snodgrass says producers should not focus solely on Pacific Ocean temperatures near the equator. In fact, he says El Nino historically has a weak correlation to U.S. summer weather patterns during the heart of summer. Instead, Snodgrass says producers need to watch ocean temperatures off the west coast and in the Gulf of Alaska. So we'll see if this comes about. Switching over to National Beef Wires and Cattle Market News, August 2026 feeder cattle futures rallied sharply Wednesday, closing up $5.17.5 cents from Tuesday at $3.54.62.5 after trading as low as $3.50.22.5 overnight. The move marked the largest single-day gain since May 5th and came after a volatile stretch that included declines of $9.25 on May 21st and $6.67.5 on May 22nd. Despite the strong rebound Wednesday, August feeders remained $18.90 below the April 30th close, which was $373.52.5. Over the 19 session data set, the contract posted 8 higher closes and 11 lower closes, reflecting the sharp volatility and wide daily swings currently dominating the feeder cattle futures market. Federally inspected cattle slaughter on Thursday was estimated at 110,000 head, up slightly from 109,000 head just last week but below 121,782 head a year ago. Week-to-date cattle slaughter stands at 329,000 head compared to 427,000 head last week and 364,066 head during the same week last year. Year-to-date cattle slaughter totals 11.06 million head. That's down 9.3% from last year's 12.19 million head. Live cattle futures closed sharply higher Wednesday with the June 2026 contract selling at 251.42.5 up $3.20 on the day. Feeder Cattle Futures also posted strong gains as the August 2026 contract closed at $354.62.5 up $5.17.5. Outside markets were mixed with July 2026 corn closing at $4.52.5 a bushel down a nickel while crude July crude oil fell $4.53 to settle at $89.36 a barrel. Wrapping up with financial news, U.S. consumer confidence declined slightly this month as gas prices stayed high and inflation remained elevated, a sharp contrast to soaring stock prices that hover near record levels. The conference board's consumer confidence index slipped 0.7 points to 93.1 in May, the first decline after three months of gains. The measure hasn't fallen as much this year as other gauges of consumer attitudes, but it has been stuck at a low level since the pandemic. Before COVID-19, it regularly reached 130. A separate gauge of consumer sentiment released last week by the University of Michigan fell to a record low this month. Solaring gas and food costs have worsened inflation that is outpacing the average growth in paychecks, reducing most Americans' purchasing power. It seems that Americans have soured on President Trump's economic policies, according to some polls, potentially creating problems for Republicans heading into the midterm elections. Consumer sentiment is mostly gloomy even as the economy is still growing and an unemployment rate has stayed low. Some economists argue that the gap reflects inequality in a K-shaped economy, with higher income Americans benefiting from rising stock prices and still spending while lower income households struggle. Today's consumer confidence survey showed that confidence grew among households with incomes at or above $100,000, while it fell for most others. Well, that's all for now. As always, thanks for tuning in. Leave a comment, share, tell all your friends I'll be back Monday. More business news across the IG Financial Market. And then I'm Mike Hoffman, and goodbye for now.