Cattle Futures Hit Record High Amid Cold Weather Threat to Supply
Cattle futures surged to record levels as cold weather threatens beef supplies, compounding existing market challenges.
Cattle Futures, Beef Supply, Cold Weather, US, Market
Chicago: Cattle futures are on fire right now! They shot up to a record high on Thursday. Why? Well, a cold snap is about to hit the US beef market, which is already feeling the pinch from tight supplies.
According to the US Weather Prediction Center, heavy snow and frigid temperatures are expected in the Plains cattle belt soon. While cattle can handle some cold, extreme temperatures make them burn more energy. This can mess with their feed conversion rates and lead to lighter carcass weights.
Last year, we saw animal weights drop by about 3% during cold spells. On top of that, the American cattle herd is at its smallest in decades. Years of drought have really taken a toll on pastures. Plus, imports of cattle from Mexico were stopped in November due to a screwworm infection, which is just adding to the supply issues.
In Chicago, live cattle futures jumped by as much as 1.2% on Thursday, hitting the highest level since 1964. However, prices for wholesale beef and cash cattle are still below the records we saw last summer. It’s a wild time in the market!