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Real Time Insight

A recent report from the farm noted that the acreage that was used to plant corn had fallen.  Despite that fact, production was expected to increase almost 40%, and that is on top of a bumper crop from last year.  That means one thing, and one this only, the price of corn is going to continue to fall.  I grabbed a chart of maze from FinViz....



This move lower in corn might lead one to believe that to price of animals that eat corn might be headed lower, but that logic doesn't work.  Let's take a look at hogs... not that they exclusively feed on corn, but the price movement of late is what I want to focus on.



The chart shows the increased prices of late, including a substantial gap higher about a month ago.  The real price move that I wanted to highlight is coming from cattle.

Here is the chart of love, I mean the chart that investors love to see.  a nice 45 degree angle on this one for Feeder Cattle:



This chart almost makes you think that its a dot com stock of some variety, but no, its feeder cattle. MOOOO!

Finally I have live cattle price chart... something that you can see here is the near parabolic move that recently hit my radar... now its on yours.



This is telling me that prices at the grocery store are moving up, and probably in a big way.

Do you think that higher beef prices are just the start of things or are the price movements in corn more telling about the future?

Join in the discussion below!

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