U.S. beef packing companies are suffering the largest losses in 2-1/2 years as tight supplies of cattle have them paying near record high prices for them, analysts and traders said on Thursday.
The losses could cause beef companies like industry leaders Tyson Foods Inc (TSN.N) and JBS USA, a unit of Brazilian company JBS SA (JBSS3.SA), to cut back on the number of cattle they slaughter, which could eventually lead to higher retail beef prices, analysts said.
Higher beef prices and reduced supply. Two wonderful trends. Link.