Crop yields are better than expected and will be well above last year's level. Wheat prices have fallen due to the larger wheat harvest, but District wheat producers will still earn bigger profits due to the good crop. Above-average yields are expected for corn and soybeans, and while larger supplies will put some downward pressure on prices, growers will likely earn solid profits. District cattle feedlots are profitable, although a recent downturn in fed cattle prices has squeezed profits. The number of cattle in feedlots is higher than a year ago, suggesting that supplies of beef to consumers are likely to remain high and fed cattle prices could drift lower in coming weeks.
Feedlots continue to market cattle as quickly as possible to stay ahead of falling prices.
Meanwhile, excellent pasture conditions and high feeder cattle prices are yielding profits for most District ranchers, and ranchers are optimistic that the profits will continue this fall. District hog producers are also enjoying a profitable year, and a new tide of pork exports to Japan may keep hog prices at profitable levels. Higher futures prices have encouraged existing hog operations to expand and large corporate farms to move into the District. While the increased production is boosting rural economic activity, many rural residents are concerned about the impacts on quality of life. Wages and prices Labor markets remained tight last month in much of the District, with some continued evidence of wage pressures.