Meat prices have been rising at a rate of about 3% per annual over the last 40 years. Meat is what I classified as an edible commodity, so is corn, wheat and rice. And as these commodities start picking up in prices, they are the one that will give the central banks a huge headache and to consider to hike its interest rates than the other commodities in the CPI basket. Why is this so? In short, people can still live with some inconvenience without cars or petrol, but not without food. Therefore, there is an urgency for the policy makers to first take care of the basic needs of the people.
Content: . Long-term direction of Live Cattle . Trading ideas . Investing ideas
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A little hack here to project the coming CPI data and also to know how aggressive the Fed will be with interest rate hike - you may consider to track the development of these edible commodity prices, if it is still trending up, we should be expecting a higher CPI and interest rates.
Example on Live Cattle Futures: 0.025cts = US$10 0.10cts = US$40 145.00 = 1450 x US$40 = US$58,000 From 144 to 145 = US$400
China consumption of beef rocketing, but economy is doing poorly short term, but overall beef growth to China will continue.
faridshiraz
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There is a downward trend in the daily time frame. But in the weekly time frame, the price needs to rest. But after a break, it continues its upward trend. It has grown a lot in the monthly time frame, it has not yet reached the resting point, but it seems that there will be a price correction in the monthly trend and it will grow again.
konhow
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Thanks @faridshiraz, I am having the same view as yours. A little more downside, support should be near, keep on keeping watch.
wackerman
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That 1 month live cattle futures chart looks like a wyckoff model, heading toward final peak after a bottom spring. This would support your argument. Great work.