How to Invest in Livestock
A while ago I wrote an article looking at ways to capitalise on the high food prices How to make Money from Higher Food Prices. We haven't really experienced much in the way of upside and to be honest I don't expect to see much for maybe another 6 months or so.
As I pointed out in the above article one of the drivers that I saw for investing in livestock was the rising cost of corn and feedstuffs.What is currently happening is that some farmers are selling or in some cases even slaughtering some of their herd because that cost them less than having to buy the feed to keep them alive.
While this slaughtering is going on I don't expect to see much of an increase in prices of Hogs or Cattle, after about 6 months or so of this slaughtering I think we will start to see a shortage of supply driving the market prices of livestock higher.
Until we see a realisation that the slaughtering is starting to create a shortage I don't see there being much short term movement to the upside, if however you are looking for a good longer term play on rising food prices I would still be considering the CATL ETF for Cattle and the HOG ETF for Live Hogs. It is certainly my opinion that they are a strong buy on any further weakness.
Best Wishes
Alan
