Beef Prices Hit Record; Hog Rally Forecast

For those looking for sleeper issues in the 2012 election campaign, keep an eye on beef prices. Ron Plain, University of Missouri economist, recently summarized record prices by saying “since the per capita beef supply is expected to be 4-5 percent lower in 2012, many more months of record retail beef prices are likely in the coming year.”

The continued shortage of cattle, made worse this past year by the drought in Texas, has set up tight beef supplies going into 2012. Plain notes ominously “since no turnaround in cattle numbers is likely soon, the closing of another cattle kill plant is likely.”

Cattle prices are up about 25 percent this year over 2010 because of export demand that has pushed foreign sales up 30 percent or more year over year.

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