Beef prices set to surge further as farmers sell off cattle herds

More breeding stock is being sent to the sale barn amid soaring input costs and drought conditions

By Breck DumasFOXBusiness

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U.S. cattle producers are sending higher numbers of breeding stock to the sale barn, and some are liquidating their herds entirely, signaling a trend that analysts say will likely push already-elevated beef prices even higher in the not-too-distant future.

The latest cattle report from the U.S. Department of Agriculture shows the market has contracted to levels not seen in years, with total inventory dropping 2% to 98.8 million head since July 2021. 

Cattle inventory has dropped to its lowest level in years as it continues to decline.  (United States Department of Agriculture)

But it’s not just the reduction in cattle overall that is of concern. It’s what is getting sent to slaughter. There is a notable boost in calf-producing females getting sold for processing in addition to steers, which are typically favored for consumption.

“We are seeing large numbers of female stock have been placed in feedlots,” USDA livestock analyst Shayle Shagam said in a radio report for the agency Tuesday. ……..more here

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