Looking around for more trading opportunities, there is an obvious one waiting on the sidelines which is meat futures! This is not an area I have ever traded, however, even a cursory look at the monthly charts for Feeder cattle and Lean hogs shows up a clear trading opportunity when / if price breaks through the upper resistance line 120 for cattle and 82 or so for Hogs.
With input prices at 300% or so increase this decade the price of the meat futures have traded sideways – perhaps it is that supply is being brought to market early to save costs, hence bringing forward supply.
Using monthly data that goes back to 1970, the inflation-adjusted high for hogs is 334% above the 2004 nominal highs. And this makes sense since hog prices at the farm and wholesale levels are at the same nominal prices today as they were in the 1970s.
How about that – an investment that costs literally (nominally) as 30 years ago. One to watch.
