Grain and oilseed prices rose the most allowed by the Chicago Board of Trade after the U.S. government said supplies will be smaller than forecast last month, increasing the cost of producing food and fuel.
Bill Donald, the third-generation owner of Cayuse Livestock Co., sold the calves he raised early last summer and cut purchases of cattle after pastures dried up. The herd grazing his land now is about 85 percent of normal.
Foreign food companies, banks and makers of fertilizer and chemicals will boost investment in U.S. agriculture as economic growth spurs demand, said an economist at Wells Fargo & Co., the largest U.S. lender to farmers.
Feeder-cattle futures dropped for the sixth straight session on speculation that demand will slow as high U.S. feed costs discourage purchases of the animals. Cattle and hog futures were little changed.
The multi-generation reign of U.S. farmers as the world’s largest corn exporters is about to end, after three straight years of slumping harvests ceded market share to Brazil, where production doubled since 2005.