Livestock futures are pushing toward record high prices as a result of increased expenses and costs to feed the animals, according to Bloomberg.
The past year has seen cattle futures gain 16 percent and the commodity is driving toward highs of $1.36 per pound, which would occur in about seven months, research director Rich Nelson with Allendale of Illinois told Bloomberg. Expenses associated with feed costs have been climbing high as corn futures drive to their top annual average price thus far.
"We're going to be talking about a historically large reduction in beef-cow numbers," economist David Anderson with Texas AgriLife Extension Service in College Station, Texas, told Bloomberg. "If nothing else changes, that's tighter supplies and less beef and higher prices."
At 10:39 a.m. on Tuesday, cattle futures were up 0.42 percent, a 0.005 cent climb to $1.1845 per pound. At 10:37 a.m., corn futures increased 1.23 percent, an 8.5 cent lift to $7.0075 per bushel.
Reuters reports China is aiming to buy corn shipped by either the U.S. or Argentina but grains are still feeling the pinch as a result of troubles with equities and financial markets.
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