Fueled by rising global demands for U.S. beef at a time when the domestic herd continues to decline, beef producers should prepare for steep increase in prices in 2011 – both for beef and feed commodities.

The bulk of February’s cattle marketing was ruled by weather, as not one portion of the United States escaped the wrath of a series of snowstorms and bitter-cold. The first sign of the “weather market” showed up at the tail-end of January as nationwide feeder markets were predominantly lower on fears of the approaching blizzard, plus added pressure from lower cash fed cattle and CME cattle futures.