Cattle futures rose as animal supplies dwindled in the U.S. and global beef demand climbed, boosting meat costs for restaurants including Sonic Corp., a hamburger chain.
In the U.S., consumers will pay as much as 5 percent more for beef this year, more than any other food group except seafood, after the meat rose as much as 10 percent last year, the government has estimated. The cattle herd was the smallest since at least 1973 as of July 1 after a drought in Texas cut supplies. Beef exports surged 25 percent in the 10 months ended Oct. 31 from a year earlier.
Rising global demand and the shrinking herd in the U.S., the world’s largest beef producer, spurred a 12 percent increase in cattle futures last year, the fifth-biggest gain among components in the Standard & Poor’s GSCI Spot Index of 24 raw materials. Retail beef reached an all-time high in November, signaling higher costs for Oklahoma City-based Sonic and Ruth’s Hospitality Group Inc., a steakhouse owner.
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