Us Drought Raises Price Volatility Of Shoe Products

Severe drought has plagued most parts of the central and southern states of the United States, which has brought a chain reaction to the cattle industry.

Over the past five weeks, corn prices have risen, making it difficult for ranchers to raise their livestock.

Luckily, in the central coastal area, there are enough grass to let cattle live in the next few months, but when the price of corn increases nationwide, the price of cattle is falling.

This is because cattle farmers began to lose their corn prices from nearly $8 per bushel to nearly $8. As a result, they were forced to increase their slaughter because the cost of raising livestock became too expensive.

This may reduce the price of cattle, and will lead to a fall in meat prices in the short term, but in the long run, the opposite will happen.

After the drought, the cattle farm owners were forced to rebuild the number of cattle, feed prices fell or returned to normal prices.

Templeton cows Dick

Nock has been engaged in cattle industry for decades.

But now he says the situation is particularly severe.

"The whole industry is slowing down," he said. "It takes a lot of money to raise these cows."

This is because many ranchers and dairy farmers are selling their livestock to reduce the cost of cattle because of rising corn prices.

Nock said, "they have to get rid of these animals. They can't keep them.

They can't buy licorice to raise livestock and not to run the cattle industry. "

Now 30% of the country's corn crop is at risk, and Nock says hay prices have gone from 150 tons per ton.

Surged to $250.

He said: "if corn prices rise, the price of livestock and cattle must drop."

The impact of drought may be similar to the situation in Argentina in 2009. It is a "hundred year old drought" which causes cattle to die on the arid grasslands, causing slaughterhouse growth and the number of cattle in the country from 63 million to 48 million.

The reconstruction of cattle in Argentina is likely to continue until 2017.

At present, the size of American cattle is the lowest level since early 90s, which is 91 million, and the growth of slaughtering volume may reduce this data.

The rebuilding of cattle will eventually have to be done, resulting in reduced slaughter, reduced meat supply and less export of leather to the tannery industry.

If demand does not collapse, all these factors will lead to higher prices of milk, meat and raw skins.

According to today's weather forecast of CNN (CNN), there is no rainfall in these agricultural areas, so the cost of corn, soybeans, wheat crops and grazing pastures will continue to rise, thus leading to a rise in raw material costs.

Because the cost of raw materials is expected to rise again, sooner or later, the leather drying plant will also rise in price. Leather price increases mean that the shoe industry will have a price surge.

The rising price of raw materials is made of genuine leather.

It will bring certain price adjustment, and shoes can not be ignored by wholesalers and shoe dealers.