Analysts expect the upcoming report to show another 1.5% drop in the calf crop (consistent with the lower cow inventories). This would imply a 2011 calf crop of just 35.149 million head, or half a million less than the previous year. With 2 million fewer calves coming through than just five years ago, US beef supplies will remain tight and pave the way to even higher beef prices down the road. Cattle prices appear high at this time but they will be even higher when producers finally decide to hold back heifers for herd rebuilding.
As seen on marketwatchonline.com
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