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AgResource Chief Bullish on Cattle, Hogs
Posted: 07/01/10
By: tomgrisafi
We at Indiana Grain have been keeping close watch of meats. And we find it difficult to argue with analysts who are predicting a busy summer of trading for locals and major firms alike in the meats.
The Dow Jones Newswire ran with a piece today about cattle prices being poised for a potential record rally over the next year. Hogs also hold bullish prospects as global demand grows and meat supplies shrink to near 30 year lows.
Dan Basse, president of AgResource, says worldwide beef, chicken and pork production is expected to rise 1.4 percent this year, to a record 233.3 million metric tons, the report noted. But total meat stocks are projected to fall to 1.8 million metric tons at the end of 2010, the lowest since 1981.
Additionally, meat consumption should remain strong as China’s economy expands, and the U.S. may see additional export demand from Japan following an outbreak of foot-and-mouth disease in the country earlier this year.
“We’re optimistic long-term” on cattle and hog prices, Basse said during a June 28th crop and weather seminar hosted by CME Group, the Chicago futures exchange operator. “We think there’s a lot more bullish opportunities in meats than in grains.”
According to the coverage from Dow Jones, Basse expects prices for slaughter-ready cattle to climb above $1 a pound over the next 12 months and possibly reach records above $1.10 if harsh winter weather in the central U.S. impedes animals’ ability to gain weight.
Source: Dow Jones Newswire
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Guest
Posted: 07/06/10
I think that the main factor in the upside move of cattle/hogs is the demand in China. So hopefully they are buying and we jack up the cattle markets!