It's probably a good time to become a vegetarian--maybe.
California got some much-needed rain this weekend, but water supplies given the lower levels of Sierra snow melt forecast have left the Golden Bear state's farm rich Central Valley thirsting for water-- as in irrigation to nourish crops. The area is noted for its veggie growing and grass-fed livestock.
Just a year ago the great Midwestern drought forced up feeds prices and ranchers sold much their herd early because of the higher grains prices caused by the drought. Now, however, grain supplies are plentiful causing feed prices to come down. So it's become another case of what goes around.
Government officials say beef prices were up 2% in 2013 and are predicted to finish this year up 3% or 4%. In January, according to the USDA, US retail beef prices reached an all-time high of $5.044 a pound. Ranchers aren't stupid. Lower feed prices and higher beef prices mean they are holding onto their herds longer this year, fattening them more before rushing off to market. And that crimps an already short supply of cattle on the market.
The situation in the hog market isn't much brighter. Just this week US lean-hog future contracts hit their highest since late 2011. So beef and bacon and certain veggies, look for all three to put a pinch in your purse this year.
If all or any of this sounds like some loss of purchasing power to your food budget, fret not. You can rest comfortably knowing your trusty elected officials, hedonics aside, will find a way to discount it.
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