Beef cow slaughter has surged the past two weeks as cow-calf operations from Arizona to Maryland try to cope, with, in many areas, one of the most severe droughts in years.
While beef cow slaughter remains below the level of 2010 on a year-to-date basis, cow numbers for the weeks of June 19 and 26, the latest week for which we have cow slaughter data, show slaughter up 5.8% and 7.9%, respectively, from last year’s levels. There simply is not enough grass to support cow herds. Add to that the fact this drought has been in place since last fall and we get a situation where there is little hay on hand and the hay that is available is very expensive. Even with a positive outlook for the beef sector — which we still hold — many cattlemen simply do not have the necessary resources to hang on.
As seen on marketwatchonline.com
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