The beef industry was stung by two negative events in the past two months that have left market traders uncertain about their longer term impacts. For now, market participants are taking a cautious approach until consumers more clearly define if they will reduce beef consumption.
The issue over lean finely textured beef (LFTB) played badly for cattle producers in early March and the fourth BSE cow found in the U.S. was announced on April 24. Finished cattle prices were about $129 per live hundredweight in early March before these news events, but have since declined to about $120. The decline in cash cattle prices has not been as severe as the drop in live cattle futures. At the start of March, June 2012 live cattle futures settled near $128, but declined about $15 to $113 as of April 27. In a similar manner, the December 2012 live cattle futures have declined by about $12 per hundredweight since the first of March. <Read More>
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