US beef cattle prices to rise on shrinking herd

Recovery is on the way for US beef cattle producers partly due to a potential economic rebound and the contracting herd size.

USDA chief economist Joe Glauber said beef prices had gone up and were projected to increase further, which would take steer prices with them.

Glauber said beef output this year would drop 1.5% from 2009 and prices for meat products in general were expected to rise. As a result, beef producers should see some price increases too, he said.

Steer prices are seen at US$89.50 per hundredweight. Steers averaged just under US$83 this past year so this would be an increase of about 8% in price.

Feed and energy prices are not expected to increase much for the cattle industry so there will be some recovery there as well, said Glauber.