Analysts say that despite an increase in the number of cattle in feedlots in August, the U.S. may face as much as a 4 percent decline in beef supplies in 2012. The decline will likely result in increased beef prices for consumers, reports the Des Moines Register.
The increase of cattle in feedlots can be traced to the severe Texas drought. Des Moines cattle trader Kevin Penner of Ag Trader Talk said: “The drought was so bad down in Texas that they were selling every creature they had. That’s good for supply in the short run, but we’ll be breeding fewer animals next year.”