Increased beef cow slaughter has continued through June although it is not a given that cow slaughter in Q3 will match 2011 levels. In part that’s because conditions in Texas are in much better shape this year than they were back then. Still, other parts of the country are struggling with drought and there is the potential for continued liquidation in the second half of the year, especially if conditions in regions 6 and 7 continue to deteriorate. The 3 month precipitation outlook does not look too friendly in that regard.
