Massive Storm Across U.S.- Wheat , Cattle Threatened

Massive Storm Across U.S.- Wheat , Cattle Threatened 

February 2, 2011

(Reuters) - A maj0rwinter storm sweeping across the U.S. Plains could wreak havoc on agricultural operations, threatening the dormant winter wheat crop, cattle herds , grain deliveries.

The key farm states 0f Oklahoma, Kansas , Missouri were being hammered on Tuesday by what forecasters said could be a record-setting combination 0f frigid conditions , snowfall 0f a foot 0rmore in some areas.

"This is a big storm," said Pat Slattery, spokesman f0rthe National Weather Service central region.

The storm is set to move into the Midwest region later on Tuesday , is forecast to dump up to two feet 0f snow on Chicago, home 0f the Chicago Mercantile Exchange , the Chicago Board 0f Trade.

At the CME, many traders planned to stay downtown on Tuesday night. Suitcases , overnight bags were visible in the traders' coat room.

In Oklahoma, winds 0f 45 miles per hour , temperatures 0f 9 degrees Fahrenheit (minus 13 degrees Celsius) , lower were proving dangerous f0rthe state's 5.1 million head 0f cattle, said Jack Carson, spokesman f0rthe Oklahoma Department 0f Agriculture, Food , Forestry.

Ranchers have been rushing to get their animals to areas with wind breaks , to provide hay , places where they can access water.

"Hypothermia , dehydration are the two things we worry about," Carson said.
The storm also led Cargill Inc to cancel the second production shifts on Tuesday at two Midwestern pork plants, though the company said its central , southern Plains beef plants remained unaffected.

Grain dealers said several merchandising locations through Oklahoma , Kansas were closed down 0roperating with skeleton crews as heavy, blowing snow , icy conditions overwhelmed the U.S. Plains.

Traders at maj0rgrain companies, including agricultural process0r, ethanol producer Archer Daniels Midland, Cargill, , Gavilon LLC, reported at least some 0f their operations were affected by the storm.

Fields seeded with winter wheat last fall could be threatened in some areas if they lack a protective snow cover. Frigid conditions can cause winterkill in new plants that lack adequate moisture.

"With these severe temperatures, in areas where the snow is blowing off, you could see some damage there," Carson said.

Any damage to the crop would rally CBOT wheat futures, which are already trading around 29-month highs due to a drought in Russia , rains that damaged the Australian crop.
(Reporting by Carey Gillam; editing by Jim Marshall , Dale Hudson)


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