Why the Livestock Market is Headed Higher
Jan 11, 2011
I am now hearing reports from very reliable sources that South Korea has now had to destroy close to 1.2 million animals. From what I hear they have now found over 110 cases of the disease in infected livestock. The word is most of the animals killed were pigs and cattle. Traders in the industry are now becoming more concerned than ever before that export demand from South Korea and eventually China will soon spike much higher. The big kicker is South Korea has also suspended imports of German pork over the whole dioxin contamination crisis. This has to make US pork more attractive on a global basis. Don't be surprised if traders continue to add premium to these markets, at least until they know more about the severity of this problem, how far it will spread and how much livestock will have to be killed to keep it from spreading.
DON'T FORGET...The USDA report is scheduled to be released tomorrow morning at 7:30 CST. This is certain to be a barn-burner and could push the market in either direction for several days.
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