Prices are likely to dip by the summer, but then rebound because of tight cattle supplies.
Producers are only starting to rebuild herds that they thinned because of drought and low prices in the late 1990s. The winter has been so cold and damp that cattle are taking several months longer than usual to fatten up. In bad weather, cattle in feedlots don't eat as much and use up energy staying warm. Live cattle are selling for 82 cents a pound, up from 78 cents last month and about 68 cents in February 2000. So far, the restaurant isn't changing its menu prices, in hopes of negotiating better deals with another supplier, Figueroa said.