While most commodities had a sharp rise this week, cattle prices collapsed to a four-month low, trading under $1.23 per pound. Prices are plunging due to the cattle supply outweighing beef demand. Cold, rainy weather has discouraged would-be grillers, and bargain hunters are still preferring cheap pork over beef, forcing retailers to continue cutting prices for beef cattle.
Adding insult to injury, corn prices have been rising as cattle drop. Since grain is a livestock producer’s main expense, ranchers are being slammed with industry-crippling rising costs and falling revenue.