[LCQ3, Daily] August Live Cattle Futures
Normally, we would never bring this up, but take a look at the LCQ3 daily chart. There is a bull market in -- that's right -- bulls!
It's not any bull market. It's a rocket! What's going on?
I received a telephone call today from a friend who lives in Alberta. Things are grim there. There is an invasion of grasshoppers so bad that it's like rain hitting the windshield. They're harvesting hay as fast as they can ahead of the arrival of the insects. My friend says that, "farmers across the Prairies have to worry about how to feed the cattle they can't sell because the pasture land is being devastated by grasshoppers." This means that lots of cattle have to go to slaughter, and yet the price of live cattle is soaring in the U.S. It goes to show how the U.S. ban on Canadian beed is doing wonders for the supply/demand equation for U.S. ranchers!
EDIT: My friend just provided an update: "Go figure the logic here. Right now, there is a huge cattle sale going on in Red Deer, AB. Mostly U.S. buyers looking for a good deal. Presumably U.S. citizens can cross the border from Canada to the states with our (mad) cattle in tow."
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03.08.01 13:56 #