CHICAGO – U.S. beef prices have surged this month due to tight supplies,
strong exports, and an uptick in restaurant business, producing badly needed
profits for U.S. beef companies and cattle producers.
The wholesale price for choice-grade beef, which is often served in restaurants,
is the highest in nearly two years at $163 per hundredweight.
“The supply side is so tight that any inkling of demand improvement sends prices
higher,” said Jim Robb, economist at the Livestock Marketing Information Center.
This has been good news for beef companies like Tyson Foods Inc (TSN.N), Cargill
Inc CARG.UL, JBS-USA (JBSS3.SA) and National Beef Packing Co.
On Thursday, HedgersEdge.com calculated that beef companies, on average, will
earn about $54 profit on every head of cattle they process, compared with about
$14 on March 1.
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