Costly Cattle

After years of drought, the US cattle herd is the smallest it’s been in decades. To that add an unexpected drop in feed prices resulting in farmers holding on to females to breed animals and rebuild herds, and you have bullish prices. Cattle futures are up 10% this year, retail beef hit a record $5.01/pound in January and spot cattle is $1.52/pound. Arugala, asparagus or avocado anyone?

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