Tight US cattle herd keeps beef prices elevated - CME

CME live and feeder cattle futures ended higher on Monday under support from the ever-tightening cattle supply and expectations that the US-Mexico border will remain closed to the import of cattle due to a mounting number of screwworm cases in northern Mexico, reported Reuters. On Friday, the US Department of Agriculture (USDA) said in a biannual report the US cattle herd had fallen to its smallest size since 1951, signalling beef prices will stay high for consumers after setting records last year. The nation had 86.2 million cattle and calves as of January 1, the USDA said in the report, after a persistent drought drove ranchers to slash their herds. That was down 0.4% from a year earlier, when the herd also hit its lowest level since 1951. "The confirmation that producers have not started an expansion in a serious way and that we're still having declines in the beef cattle herd is still a bit of a concern," said Rich Nelson, chief strategist at Allendale. During a Monday morning ...