Cattle Seen at Record $1.36 per Pound as Drought Reduces Herd

Texas cattle ranchers, the biggest suppliers in the world’s top beef-producing nation, will cull the most breeding cows ever this year as drought increases feed costs, driving livestock prices to a record. Cattle futures that gained 18 percent in the past year in Chicago may reach an all-time high of $1.36 a pound in as few as seven months, said Rich Nelson, the director of research at McHenry, Illinois-based Allendale Inc., who has been studying agricultural markets since 1997. Feed costs have surged, with corn heading for the highest annual average price ever. The 11 months through August were the driest since at least 1895 in Texas, and the state’s farm losses may top $5.2 billion. Ranchers may sell or slaughter 500,000 beef cows they would normally keep for breeding because it’s too expensive to feed them, Texas A&M University estimated...more