That’s going to be one expensive steak!

Where can we feel the impact of high inflation most directly in our daily lives? Food and energy! Livestock is a market that certainly deserves more of our attention. Surging energy prices (especially natural gas) have led to high fertilizer prices, which pushed up grain prices. Eventually, that gets translated into higher prices for livestock which are heavily affected by the prices of corn and other feeds. The transmission takes time; therefore, the opportunity window to position ourselves is still open. It’s also a good time to stock up on some premium steaks in your freezer before they get a lot more expensive!


December 2022 Live Cattle future has just broken out from a 10-week ascending triangle, which suggests that the next leg of the rally has likely started.


Entry at 150.5, stop below 146.5. Targets are 155.5 and 160.5.

Disclaimer:
The contents in this Idea are intended for information purpose only and do not constitute investment recommendation or advice. Nor are they used to promote any specific products or services. They serve as an integral part of a case study to demonstrate fundamental concepts in risk management under given market scenarios.