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.

March 26, 2018

I realize that I said the same thing at this time last week, but the pork cutout value should be on bottom right here. I mean really, how much downside potential could remain? It always possible that I am overestimating the strength of underlying support at $.50 per pound in the ham market, and at $1.00 per pound in the pork belly market, and at $.80 in the bone-in loin market, and at $1.10 in the (strap-off) boneless loin market, and at $.60 in the lean trim market, and at $.70 in the market for boneless picnics. But these are all prices which have attracted buyers in the past, and I don't know of a reason why they would not do so again. And with the exception of bone-in loins (which are still a nickel away), all are where prices were quoted on Friday.
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Here are the excerpts from this week's "Trading Cattle...from a meat market perspective" report, by Kevin Bost.

March 27, 2018

Currently I hold no position in the cattle market. I had intended to place a longside bet on the August contract, and I still find plenty of reason to do so (it should be obvious from the picture at left). What is holding me back is that the big seasonal increase in fed cattle supplies - well-advretised as it may be - still looms ahead, and the beef market is just now beginning to turn downward after a three-week consolidation. We can guess, but we don't know how far cash prices will have to come down in order to balance demand with the larger supply. It's hard on my nerves to hold a long position when I am waking up to negative news every day.
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Here are the excerpts from this week's "Trading Hogs...from a meat market perspective" report, by Kevin Bost.

March 21, 2018

As many attempts as it took for the April contract to fill its gap at $65.35, it suddenly became very easy to buy it at that point, which I did last Friday. I wish I had waited one more day. The market has now registered three closes below the previous contract low, and yet I remain long of April hogs. Why? I have been forced to ask myself that question many times in the last three days. This is a violation of basic capital management guidelines. I am well aware of the possibility that the price action on the board could be signaling that one or more of my key assumptions regarding supply and demand in the near term is errant. But even if that is to be the case; and even though I have lowered my sights for the cash hog market on April 13; then what are the chances that April hogs will make another major leg down from here? My conclusion is that they are quite small; hence the existing long position.
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