A source of advanced information and market analysis focused on the development of pricing and risk management strategies for anyone in the business of buying or selling meat, or trading meat-related futures markets
Whether you're operating restaurants or supermarkets; a food distribution service; a processing or manufacturing facility; or an import/export trading company, you’re in a highly competitive business. Meat markets are volatile, and margins are often thin. A few pennies per pound can make enormous differences in your bottom line. In order to make the best possible decisions, it is essential to have the best possible information at your disposal.

Here are the excerpts from this week's "Meat Markets Under a Microscope" report, by Kevin Bost.

October 12, 2018

The pork cutout value lies only $1.01 per cwt below the pinnacle of its explosive September rally, which was reached two weeks ago. Why is it not backing off? Well, it has not really been tested from the supply side just yet. Over the last five weeks, hog slaughter has averaged 2.5% below a year earlier. Surely the hog supply is bigger than that, isn't it? The biggest kill in that five-week period was 2,558,550 and the last two weeks have been near 2,500,000. If USDA's spring pig crop estimate is anywhere close to being accurate, then weekly slaughter will run consistently above 2.6 million from next week until the Christmas holidays begin. Naturally, this will put downward pressure on all pork products.
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Here are the excerpts from this week's "Trading Cattle...from a meat market perspective" report, by Kevin Bost.

October 14, 2018

Having liquidated the long October / short April spread as the prospects for a strong rally in the cash market into the end of October began to fade, I am focusing on the short side of the April contract. The central question in my mind, of course, is whether or not this contract has established its ultimate peak at $124.92 per cwt.
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Here are the excerpts from this week's "Trading Hogs...from a meat market perspective" report, by Kevin Bost.

October 22, 2018

When I adopt the assumption that there will be a leap in U.S. pork exports to China in the months ahead, I am inclined to approach the hog market from the long side - especially in the February contract. But before I get too excited about placing a bet, I have to remind myself that the notion of a steep increase in exports is rather bold, let alone the degree to which they may expand. The projections shown on the next page mirror the pattern in Chinese imports of U.S. pork that unfolded in 2007-2008, the last time that a swine disease severely reduced Chinese pork production
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