By Michael Hertzer
Little known market signals that beef prices are currently high.
Prison calves are animals that are not yet fattened with corn for slaughter. Futures market prices for these animals are at their highest level since March 2016 in Chicago. These gains follow a study showing that the US herd has shrunk by 1.3 percent over the previous year.
Inactive weather and expensive fodder contributed to the trend, with the unusual cold killing calves earlier this year. Recent droughts and rising temperatures have led farmers to anticipate animal slaughter.
As a result, consumers can expect even higher prices for beef, which was higher than last year due to contagious disruptions in supply chains.
Which means it’s about to be the most delusional time of the year, as well Tyson Foods(TSNF34), Those who experienced beef margins recorded by complications, would have to pay higher fees for livestock.
U.S. farmers have complained to the Washington government that meat packs are taking an unequal share of profits. Now, the industry can regain bargaining power by reducing the number of animals available for sale.
“After all, low livestock supply has historically been a negative factor for meat packers like Tyson,” the researchers said. JPMorgan Chase Like Ken Goldman in a statement on Monday.
The so-called fodder futures futures for September calving raised the 3-cent trade ceiling in Chicago to $ 1.6555, the highest level since March 17, 2016.
Tyson declined to comment, citing a quiet period before the balance sheet was released.