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New Mexico | establish momentum in the surrounding markets.
Foremost indicator of said is the DOW.
Keep in mind, approx 85% of ALL money in the markets Westerners are familiar with is Fund money.
The whole is somewhat like a game where 6 players can almost Buy the whole game at any given time thus a major influence ANY direction at said time.
And there are say 1,500 other SMALL players for example, who can only afford to play with approx $1 each.
Since funds play the whole schematic ( stocks, bonds, futures etc ) and futures is actually a rather small money segment, things like agri commodities have not yet picked up similiar momentum which other segments have.
Low is IN on Cattle, the Trend is higher.
Low is IN on Hogs, the Trend is higher.
Keep in mind BOTH of the afore from a traditional usa process schematic are the SAME.
The way to keep Total Meat product costs the same are to Pay UP for one product...Pay steady or lower for the other ( that keeps Net average total meat costs lower due to the total averaging affect ).
Also, the seasonal high on cull cows and bulls may be in.
3rd dimension of averaging total beef costs for the traditional system, is simply to buy the cull cows and bull for LESS and either pay more or steady for traditional fat cattle...thus once again the total meat cost original "buy in" average is as low as possible.
Just because processors may be buying animals for example say $1 and exporting all the resulting product for say $10 in offshore money, there is nothing that says they have to pay usa producers more.
Basically the whole meat export niche is supplied with processor produced/contracted cattle and hogs both. ( about 7.5 million fat cattle per year now...which is perhaps coincidently the same number as packer owned and fed feeding capacity ).
Anything that has to do with increased Protien content IS going higher. Grains ( wheat/soy), Meat, milk, cheese etc.
EXPORTS. That simple. ( The American system itself seems to be able to only afford to pay actually LESS for the afore products than anyone else on the Globe ).
The Higher the Protien content and the "closer to the plate," products fit the faster turn "on site, on time " systems which have been basically dictated by tight total money supplies.
With the bear funds consistently blown out of the equities now for 6 months...they're likely to start putting money somewhere as a BULL bet.
Cheapest place to do that with thee most leverage happens to now be in agri commodities.
tc806...sooner or later we're going to have a True breakout week ( mentioned that to You the 25th ).
THAT will carry EVERYTHING ie cattle, grains etc.....not just say grains or just say cattle / hogs.
Kinda like saying free beer tommorrow ( since tommorrrow literally never comes ) LOL.
Next Week? Why Not?.....whole deal is starting to act "antsey" for Ups.
Edited by Markwright 7/30/2010 13:44
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Markright please stand up
