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The number of cattle that are fat enough to be slaughtered is rapidly decreasing. (Daniel Brenner for The Wall Street Journal).
The price of futures on live cattle reached a record high on Thursday, an indication that beef prices will continue to rise.
Live cattle are cows that were fattened in feedlots until they reached a weight suitable for slaughter. The most actively traded August futures traded at $1.72 per pound, surpassing the 2014 high of $1.71.
The drought has caused pastures to dry up, which in turn has pushed cattle prices higher.
Feed costs are being raised
During this time, the supply chain is being unraveled after Covid's disruptions.
Live Cattle Continuous Contract