As a major cattle-raising region in the USA, the Central Plains and Midwest have recently faced severe cold weather, significantly impacting the local cattle industry. Chicago beef Futures prices surged to historical highs on Friday, and Analysts warn that adverse weather conditions may lead to a reduction in herd size and a decrease in carcass weight, further exacerbating the tight supply of beef in the USA.
As a major cattle-raising region in the USA, the Central Plains and Midwest have recently faced severe cold weather, significantly impacting the local cattle industry. Chicago beef Futures prices surged to historical highs on Friday, and Analysts warn that adverse weather conditions may lead to a reduction in herd size and a decrease in carcass weight, further exacerbating the tight supply of beef in the USA.
In the past week, the weather forecast indicated that the polar cold wave model would lead to winter storms in half of the eastern USA. As of Friday morning, the latest forecast from the National Weather Service's Weather Prediction Center showed that from the Central Plains (Cattle Ranching Area) to the Mid-Atlantic region, there will be widespread heavy snow and freezing weather from this weekend to early next week.
The Daily Livestock Report warns that during the cold wave that swept across 48 states in the USA last year, the average weight of cattle decreased by 3%.
"Although cattle can withstand cold weather, extremely low temperatures will force them to expend more energy, directly affecting Fodder conversion rates and ultimately leading to a decrease in carcass weight."
Analysts have also noted that cold weather exacerbates the ongoing shrinkage of the cattle herd in the USA. The latest data shows that the size of the cattle herd in the USA has dropped to its lowest level since 1961.
As a result, Chicago beef Futures prices soared to new historical highs.
In December last year, due to tight beef supply in the USA, which could not be quickly restored, the average retail ground beef price reached an all-time high. According to data from the USDA, the average price at the end of 2024 is projected to reach $5.628 per pound. However, actual prices are often higher, especially for 'organic' ground beef, which may even exceed $10 per pound. Analysts predict that beef prices will continue to rise sharply in 2025.