U.S. Cattle Herd Shrinks to Smallest in 53 Years (Update1) – Bloomberg.com

Agricultural , Commodities Jan 29, 2011 No Comments

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.

Cattle futures climbed 26 percent in the past year, reaching a record $1.166 a pound on Jan. 18. Still, surging prices for corn, the main ingredient in livestock feed, discouraged expansion. The grain has jumped 78 percent in the past year.

via U.S. Cattle Herd Shrinks to Smallest in 53 Years (Update1) – Bloomberg.com.

Rod Sherkin

Rod is a former senior executive, responsible for Purchasing, for both Pillsbury and Ball Packaging back in the 80’s and 90’s. Since then, he has continued to work in the Purchasing field as both a consultant and founder of the website Propurchaser.com.