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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: Horgad who wrote (94740)6/4/2008 5:22:55 PM
From: Tommaso  Respond to of 110194
 
The USDA and everyone else reports high culling or slaughter rates for animals. This means more meat on the market today and less meat tomorrow. And the meat tomorrow (i.e. some months from now) will have to sell at higher prices to cover cost of feed. The futures used for COW are not affected by cost of feed, except to the extent that this raises the price of meat.

Or so I think. Sometimes weird things happen.



To: Horgad who wrote (94740)6/4/2008 5:27:03 PM
From: Tommaso  Respond to of 110194
 
If you take the price of slaughter steer prices in 1980 as being 65--then today's inflation-adjusted price is 183, or almost triple.

I expect to see meat prices double in a year or two.