Ron Plain News
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U.S. hog farmers are poised to produce a record amount of pork at a time when exports are slumping the most in more than a decade, prolonging a global glut into a fifth consecutive year.
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University of Missouri livestock economist Ron Plain reduced his forecast for the U.S. hog slaughter in 2011 because of rising feed costs.
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The cattle herd in the U.S., the world’s largest beef producer, probably shrank to the smallest in 61 years as drought ravages pastures from Texas to Nebraska and boosts feed costs.
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Pork producers say U.S. consumers will pay more for the meat if the industry abandons the practice of confining sows to single stalls to appease food companies including McDonald’s Corp. demanding open pens.
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U.S. feedlots purchased or placed 1.6 percent more young cattle in January than a year earlier as persistent dry conditions spurred ranchers to move animals off pastures.
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The U.S. cattle herd as of July 1 probably shrunk to the smallest on record, signaling tightening beef supplies and higher costs for shoppers and companies from Tyson Foods Inc. to Wendy’s Co.
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U.S. hog producers may start to cull herds as the faltering economic recovery curbs pork demand and tightening corn inventories boost livestock-feed prices, curbing animal supplies and increasing costs for meatpackers.
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The U.S. cattle herd has shrunk to the smallest since three years before Ray Kroc opened his first McDonald’s Corp. hamburger stand, reducing supply and raising prices even as domestic demand sinks to a two-decade low.
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The U.S. needs more than average precipitation to end the worst drought since the 1930s, while normal to below-normal rainfall is forecast, said John Nielsen- Gammon, a state climatologist and a professor at Texas A&M University.
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Meat prices are poised to extend a 14 percent rally this year that drove U.S. retail costs to the highest levels since the 1980s as surging corn futures prevent livestock producers from expanding their herds.
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