Mad Cow Scare Has Cattle Prices in Free Fall

Cattle futures earlier in the year were on a steady if unspectacular rise towards $130 per hundredweight when the Federal Reserve jaw-boned all important commodity markets into submission with outright lies about the Fed’s hawkishness on monetary policy.  Since then the price chart has looked like something out of a horror movie, or an Enron annual general meeting.

The latest report from the U.S.D.A. that a mad-cow infected animal was found (where else??!) in California sent live cattle futures down even farther, closing off $3.15 to $111.56.  The futures price now sits at a very critical support line that will likely break later in the week, if not tomorrow.  This is good news for us goat farmers but bad news for the already battered and bruised U.S. beef market that has had to contend with pink slime attacks and relentless ignorance from virulent vegans and oh so very vociferous vegetarians of obvious venality.

I would hope that my “spidey-sense” is wrong that this is just another re-election tactic to get food prices down coming into the campaign season and that there really is an issue that needs to be dealt with.

Of course, if the goal is to get humans off of meat and eating even more meat-substitute, soybeans, that will quickly be a non-option as the price of those little inedible nitrogen-fixers masquerading as food is continuing on an inexorable climb to levels that will soon be out of reach of even those whose EBT cards haven’t been cancelled.

Soybeans closed at 1467.63 for the July contract, up 1.8% on the cattle woes.

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Tom Luongo

About Tom Luongo

Tom Luongo is a professional chemist and self-taught economist who has been following and trading stocks for nearly 12 years. He has no formal ties to the financial industry and considers that an asset in his analysis of the interplay between monetary policy and capital markets.

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