10.27.09
The price of corn futures is up 15% since August – great news for farmers and bad news for cattle ranchers.
The cost of feeding these animals has risen so much, ranchers are LOSING 25-100 dollars per head of cattle! If this continues, ranchers will have to raise prices on cattle, and subsequently on your steak. In Argentina, which was historically one of the largest beef exporting countries, poor socialist government policy (intended to BOOST local consumption – idiots) and a drought has turned the country into a beef IMPORTER!
Here’s a bloomberg article on this development:
You know, there must be an investment idea in there somewhere…
Chris Grande
