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Cattle Profitability- Historic Proportions

A recent news article in The Great Falls Tribune (Mont.) reported that U.S. cattle producers are poised for a record year of profitability. Small cattle numbers and increasing export demand have contributed to robust economic variables in the U.S. cattle market. Nonetheless, drought in the corn belt and other unknowns, could potentially stymie the cattle outlook. And Reuters news recently reported that, “In the midst of the worst California drought in decades, the grass is stunted and some creeks are dry. Ranchers in the Golden State are loading tens of thousands of heifers and steers onto trucks and hauling them eastward to Nevada, Texas, Nebraska and beyond.”