Contact Us

Supply of Beef Shrinking for the Holidays

Beef
Justin Sullivan, Getty Images

Cattle futures extended a rally to a record amid shrinking supplies of U.S. beef and increasing demand for the meat as grocers boost purchases before the Christmas holiday. The rising price of feed forced many ranchers to sell off their herds over the summer creating a short-term surplus of beef.

Now the supply has dwindled and it’s starting to show up in the price you’re paying at the grocery store and at your favorite restaurant. Grocers are stocking up on beef, which is often served as part of the Christmas meal.

Consumers may pay as much as 6.5% more for the meat in 2012, the biggest increase of any food item. The number of cattle is still really tight.

Cattle futures for February delivery rose 0.8 percent to settle at $1.32725 a pound on the Chicago Mercantile Exchange. Earlier, the price reached $1.32925, a record for the most-active contract.

U.S. commercial beef output in the 10 months through Oct. 31 fell 1.1% from the same period in 2011, says the USDA. The herd as of July 1 shrank to the smallest since at least 1973. Ranchers culled herds after the worst drought since 1956 eroded crop yields, sending corn, the main ingredient in feed, up as much as 68% since mid-June.

Best of KSOO-AM

Recommended For You

Best of the Web

Leave a Comment

It appears that you already have an account created within our VIP network of sites on . To keep your personal information safe, we need to verify that it's really you. To activate your account, please confirm your password. When you have confirmed your password, you will be able to log in through Facebook on both sites.

Forgot your password?

*Please note that your prizes and activities will not be shared between programs within our VIP network.

It appears that you already have an account on this site associated with . To connect your existing account just click on the account activation button below. You will maintain your existing VIP profile. After you do this, you will be able to always log in to http://ksoo.com using your original account information.

*Please note that your prizes and activities will not be shared between programs within our VIP network.

Please fill out the information below to help us provide you a better experience.

(Forgot your password?)

Not a member? Sign up here

Sign up for KSOO VIP Club quickly by connecting your Facebook account. It's just as secure and no password to remember!

Sign up to have exclusive KSOO VIP Club contests, events, coupons, presales, and much more delivered to you for FREE.