pdyount

Who Will Be Next to Party at the Commodity Rager?

I agree meat will go up. The question I still have is whether the 'COW' etf will follow the price up.

I saw this at another message board:

"This kind of index is backed by future contracts. So it is not about whether or not meat price will rise, it's about whether meat price will rise to a level that beats currect expectation. Lean Hog future contracts for next four month are priced at 56, 68, 71, 75. That's about 33% increase in four month. That means none of us will make any money from this index's hog portion unless hog price rises more than 33% for next four month. Livestock is very different from other commodities, because you can't store it for future delivery. Oils and metals can be stored for minor cost, that makes their future prices very close to current market price, but livestock is a different animal. If anyone wants to invest in this ETF, check its future price before you decide."