Live cattle contracts hit $1.43/lb. today, highest since the contract started in 1964, according to Bloomberg's Phoebe Sedgman. 

 

 

In a recent note, ConvergEx's Nick Colas explained what's going on: Although we had a normal and even wet summer last year, it takes years for pastureland — and the volume of animals grazing on them — to recover from such a severe lack of precipitation. The last three years have seen below to severely below average precipitation.