News

(Bloomberg) -- Cattle futures climbed to a fresh record Thursday as falling temperatures and wintry conditions were set to hit a US beef market already wrestling with tight supplies.

Heavy snowfall and bitter cold were predicted in the Plains cattle belt in the coming days, according to the US Weather Prediction Center.

“While cattle can tolerate cold weather, extreme cold forces them to expend more energy, directly impacting feed conversion rates and ultimately reducing carcass weights,” the Daily Livestock Report said, adding that animal weights fell about 3% during cold-weather events last year.

The American cattle herd is the smallest in decades after years of drought in the Plains withered pastures. US imports of cattle from Mexico were also halted in November after authorities detected a screwworm infection, further impeding supplies.

Live cattle futures in Chicago increased by as much as 1.2% on Thursday to reach the highest level in data going back to 1964. Prices for wholesale beef and cattle in cash markets are still holding below records from the summer, according to US Department of Agriculture data.

--With assistance from Brian K. Sullivan.