Meats at the end of the grilling season seeking alpha pound exchange rate history


This coming weekend is the Labor Day holiday which is the last gasp of the summer season. The grills have been working overtime since Memorial Day across the United States. The period between the end of May and beginning of September is a time when families and friends gather to enjoy fun in the sun during the warm summer months famous quotes about love. Outdoors the aroma of barbecue grills fills the summer air with the unmistakable scent that most of us have come to expect and savor as a part of the summer season binary multiplication calculator. When it comes to the meat markets, the summer months is the time of peak demand each year. The barbecue has become part of the American culture and is one of the happiest times of the year. Many of us look forward to summer and the memories forged each year as the season approaches. However, cattle and hogs give their lives for our enjoyment as they file into processing plants in late spring to prepare to sizzle on our grills during the height of the season.

If I were a cow or pig, I would count my blessings each time the fall arrived, and I was still grazing in the fields or rolling in the slop. Next Tuesday, September 5 would be a day of incredible joy as it would mark a milestone or another year that I made it through the grilling season and likely had more time before my eventual demise and a journey that led to the hot grill.

Meat prices tend to peak as the grilling season approaches each year and as the Labor Day Holiday approaches, the prices of pork and beef tend to move lower fraction worksheets 2nd grade. Futures markets are a type of crystal ball as they reflect future supply and demand characteristics in markets. When it comes to the animal protein sector, the active month futures contacts are now in October which is after the period of peak demand usa today subscription. The prices of the two types of meats that trade on the futures market have moved from highs at the start of the 2017 grilling season to lows as it is coming to an end. Source: CQG

As the daily chart of October live cattle futures highlights, the price peaked on June 6 at $1.2285 per pound and declined to $1.05875 as of August 29 stock market futures cnbc. Source: CQG

October feeder cattle futures have dropped from seasonal highs of $1.59825 on May 4 to the $1.43525 per pound level on August 29. Source: CQG

As the daily chart of October lean hog futures highlights, the price of pork has plunged from highs of 72.25 cents during the peak season on July 5 to 60.075 cents per pound on August 29.

All of the meats have followed their seasonal patterns over recent months rallying at the start of the grilling season and moving lower as the peak demand period comes to an end.

Feeder cattle are doing the same and both the live and feeder cattle markets are trading at the same prices they were at the end of August in 2016.

As the daily chart shows, hogs have been falling knives over recent weeks. Hogs hit the 60 cent level for the first time since December 2016 on August 29. Source: CQG

As the weekly chart highlights, lean hog futures like the cattle contracts were trading at the same level on August 29 as they were on the same day in 2016. The price action in the meat markets which is starting to look like a carbon copy of last year could be bad news for the meats because last year their journey lower took both to multi-year lows by October.

In October 2016, the prices of beef and pork fell to levels not seen in years china stock market index futures. Live cattle declined below $1 and lean hog futures traded below 41 cents per pound. Source: CQG

As the monthly chart of live cattle shows, in October 2016 the price of beef moved to the lowest price since August 2010 when they hit 94.3 cents per pound. Last October was the first time in six years that beef was below the $1 per pound mark free tutorial for excel. Source: CQG

As the monthly chart shows, the price of pork fell even more than beef last October as it hit a low of 40.7 cents per pound which was the lowest price since way back in 2002.

So far, price action in the cattle and hog markets has been almost a perfect replication of last year’s moves usd eur graph. Seasonality in the meat markets often causes prices to extend on the upside as the peak season approaches and the downside when it is over. Time will tell if we are heading as low as we did last October, but right now the prices of beef and pork are moving in lock step with last year.

I expect that volatility will continue to dominate price action in the cattle and hog markets over coming weeks. The trend in both markets is lower and the current time of the year tells us that we have not yet seen the lows. However, for those of us who are carnivorous, we are now coming to the time of year where we should clean out our freezers and prepare to load up on those steaks, burgers, ribs and other delicacies 1 usd to bitcoin. Meats are about to get really cheap compared to where they were just a few short months ago. Last October, my local supermarket had some great sales on pork and beef, and at one point they ran a buy one and get three for free sale on all beef and pork products. I am keeping my fingers crossed that the meats move to last year’s lows once again this October. Maybe I will even buy another freezer to stock up as I have just finished enjoying the supplies I froze during last year’s sale.

When it comes to trading, watch for a bottom sometime in October which will likely be the perfect time to not only load up the freezer but to put the COW or MOO vehicles in your portfolio to take advantage of the seasonal low.

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