The Cattle Network is reporting that 29 year lows in the global meat supply could cause prices to go through the roof:
Worldwide beef, chicken and pork production is expected to rise 1.4 percent this year, to a record 233.3 million metric tons, Basse estimated. But total meat stocks are projected to fall to 1.8 million metric tons at the end of 2010, the lowest since 1981, Basse said.
Meat consumption should remain strong as China’s economy expands, and the U.S. may see additional export demand from Japan following an outbreak of foot-and-mouth disease in the country earlier this year, said Basse, who’s president of Chicago-based AgResource Co.
“We’re optimistic long-term” on cattle and hog prices, Basse said during a June 28 crop and weather seminar hosted by CME Group, the Chicago futures exchange operator. “We think there’s a lot more bullish opportunities in meats than in grains.”
Basse expects prices for slaughter-ready cattle to climb above $1 a pound over the next 12 months and possibly reach records above $1.10 if harsh winter weather in the central U.S. impedes animals’ ability to gain weight.
