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.

September 11, 2018

In March 1997, a Foot and Mouth disease epidemic broke out in Taiwan, and within four months approximately 40% of the entire pig population was wiped out. During that epidemic, 1,300 farms were affected in March, followed by 3,864 farms in April, 975 farms in May, five farms in June and three in July. Among the 4.66 million pigs found on the infected farms, about 185,000 died from the disease. The remainder, including 1.01 million pigs showing clinical signs of FMD, were destroyed.
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Here are the excerpts from this week's "Trading Cattle...from a meat market perspective" report, by Kevin Bost.

September 6, 2018

I am interested in the long side of October cattle; the short side of the June contract; and the long October / short April spread. I'll address these in order. I am confident that the cash cattle market will move upward from here, mainly because the spread between cattle and beef prices is extremely wide and therefore likely to shrink.
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Here are the excerpts from this week's "Trading Hogs...from a meat market perspective" report, by Kevin Bost.

September 8, 2018

My only position in the hog market is a long October / short December spread, which I initiated one week ago. Initially I established a target of $.50 - i.e., a December premium of $.50 per cwt - but in view of the zeal with which the cash markets have bounced from their lows now makes it seem pretty realistic that the October contract could move to a premium. The 15-year average spread in the first week of October is an October premium of $3.95....and the nearest major resistance level on the spread chart is, in fact, just below $4.00. And so, in the meantime I will simply hold the position until the December premium registers two consecutive closes beyond $3.50.
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