We've passed the point of no return
(BN) U.S. Cattle Herd Shrinks to Smallest in 53 Years, USDA Says
So the rising cost of grain leads to the rising costs of feeding cattle
which leads to ranchers breeding fewer cattle which is leading to rising
cost of cattle. Food inflation leading to more shortages leading to food
inflation leading to more shortages leading to food inflation…we’re
watching the effects of Screwflation in the Middle East (high
unemployment + higher cost of living)…don’t think it can’t happen in
America.
which leads to ranchers breeding fewer cattle which is leading to rising
cost of cattle. Food inflation leading to more shortages leading to food
inflation leading to more shortages leading to food inflation…we’re
watching the effects of Screwflation in the Middle East (high
unemployment + higher cost of living)…don’t think it can’t happen in
America.
U.S. Cattle Herd Shrinks to Smallest in 53 Years, USDA Says
2011-01-28 20:00:00.959 GMT
2011-01-28 20:00:00.959 GMT
By Elizabeth Campbell
Jan. 28 (Bloomberg) — The U.S. cattle herd shrank to
the smallest size in 53 years as of Jan. 1, as feed costs
climbed and beef producers slaughtered more animals to take
advantage of higher prices.
The herd, including beef and dairy animals, totaled
92.582 million head as the year began, down 1.4 percent
from a year earlier, the U.S. Department of Agriculture
said today in a semiannual report. That’s the smallest
since 1958, the USDA said. Seven analysts in a Bloomberg
News survey were expecting a 1.6 percent reduction, on
average.
“We slaughtered a lot of cows and heifers in 2010,
even though the outlook was quite good for saving them and
breeding them,” Ron Plain, a livestock economist at the
University of Missouri in Columbia, said before the report.
“A lot of the cow/calf producers just needed cash now.”
Ranchers in the southern Great Plains made an
estimated $52 per cow sold last year, following losses of
about $32 in 2009, said Jim Robb, the director of the
Livestock Marketing Information Center, a researcher funded
by the industry and government. Producers aren’t ready to
expand because most of the profit wasn’t made until the
fourth quarter, he said.
Jan. 28 (Bloomberg) — The U.S. cattle herd shrank to
the smallest size in 53 years as of Jan. 1, as feed costs
climbed and beef producers slaughtered more animals to take
advantage of higher prices.
The herd, including beef and dairy animals, totaled
92.582 million head as the year began, down 1.4 percent
from a year earlier, the U.S. Department of Agriculture
said today in a semiannual report. That’s the smallest
since 1958, the USDA said. Seven analysts in a Bloomberg
News survey were expecting a 1.6 percent reduction, on
average.
“We slaughtered a lot of cows and heifers in 2010,
even though the outlook was quite good for saving them and
breeding them,” Ron Plain, a livestock economist at the
University of Missouri in Columbia, said before the report.
“A lot of the cow/calf producers just needed cash now.”
Ranchers in the southern Great Plains made an
estimated $52 per cow sold last year, following losses of
about $32 in 2009, said Jim Robb, the director of the
Livestock Marketing Information Center, a researcher funded
by the industry and government. Producers aren’t ready to
expand because most of the profit wasn’t made until the
fourth quarter, he said.
Rising Futures
Cattle futures climbed 26 percent in the year ended
yesterday, reaching a record $1.166 a pound on Jan. 18.
Still, surging prices for corn, the main ingredient in
livestock feed, discouraged expansion. Before today, the
grain jumped 82 percent in the past year.
“One of our biggest concerns as we look ahead are
these increasing costs and how that potentially influences
the size of the U.S. livestock industry,” Robb said before
the report. “The largest cost input across the livestock
industry is the feedstuffs.”
The number of young, female beef cattle held for
breeding fell to 5.158 million, down 5.4 percent from 5.451
million a year earlier, the USDA said. Analysts expected a
2.1 percent drop.
Steers for immediate delivery averaged $1.0431 a pound
in the first four days of this week, up 25 percent from the
same period a year ago, according to USDA data. Before
today, wholesale beef prices rose 23 percent in the past 12
months.
“There’s just very little incentive to hold back
heifers and begin to build herds,” John Nalivka, the
president of meat-consultant Sterling Marketing Inc. in
Vale, Oregon, said before the report. “Prices are high,
and that caused a lot of beef cows to go to slaughter.”
The inventory of heifers for milk-cow replacement
totaled 4.557 million on Jan. 1, up 0.7 percent from 4.526
million a year earlier, the USDA said. The average analyst
estimate was for a 0.6 percent decline.
The number of calves born during 2010 was estimated at
35.685 million, down 0.7 percent from a year earlier and
the fewest since 1950, according to the USDA.
Cattle futures for April delivery rose 0.325 cent, or
0.3 percent, to $1.125 a pound at 12:54 p.m. on the Chicago
Mercantile Exchange. Feeder-cattle futures for March
settlement gained 0.7 cent, or 0.6 percent, to $1.263 a
pound.
yesterday, reaching a record $1.166 a pound on Jan. 18.
Still, surging prices for corn, the main ingredient in
livestock feed, discouraged expansion. Before today, the
grain jumped 82 percent in the past year.
“One of our biggest concerns as we look ahead are
these increasing costs and how that potentially influences
the size of the U.S. livestock industry,” Robb said before
the report. “The largest cost input across the livestock
industry is the feedstuffs.”
The number of young, female beef cattle held for
breeding fell to 5.158 million, down 5.4 percent from 5.451
million a year earlier, the USDA said. Analysts expected a
2.1 percent drop.
Steers for immediate delivery averaged $1.0431 a pound
in the first four days of this week, up 25 percent from the
same period a year ago, according to USDA data. Before
today, wholesale beef prices rose 23 percent in the past 12
months.
“There’s just very little incentive to hold back
heifers and begin to build herds,” John Nalivka, the
president of meat-consultant Sterling Marketing Inc. in
Vale, Oregon, said before the report. “Prices are high,
and that caused a lot of beef cows to go to slaughter.”
The inventory of heifers for milk-cow replacement
totaled 4.557 million on Jan. 1, up 0.7 percent from 4.526
million a year earlier, the USDA said. The average analyst
estimate was for a 0.6 percent decline.
The number of calves born during 2010 was estimated at
35.685 million, down 0.7 percent from a year earlier and
the fewest since 1950, according to the USDA.
Cattle futures for April delivery rose 0.325 cent, or
0.3 percent, to $1.125 a pound at 12:54 p.m. on the Chicago
Mercantile Exchange. Feeder-cattle futures for March
settlement gained 0.7 cent, or 0.6 percent, to $1.263 a
pound.
