Chinese bird flu makes demand for U.S. meat

Anonymous
Apr 26, 2013

Here is this week’s edition of Futures File, our weekly commodities wrap-up:
 
Spring fever helps beef demand

Crave a cook-out? Americans who have been hankering for a hamburger may finally get their chance to roll out the grill and release their pent-up demand for beef, pork and chicken. The US population consumes more meat per capita than any other nation and has been losing patience with cold, rainy weather.
 
Growing concerns of a new strain of bird flu in China (H7N9 Avian Virus) and subsequent massive culling of duck and chicken flocks could create a substitute demand for U.S. produced meat as a protein source for Chinese consumers. June cattle and hogs futures contracts have rallied more than two cents per pound in the past two weeks in anticipation of larger seasonal demand.
 
While livestock prices have moved up, the price for “new crop” corn has declined, as hopes for clearer weather brighten. Many grain producers throughout the corn and soybean belt have experienced planting delays due to their fields being too cold, too wet, or even flooded. Corn prices rose briefly on further weather concerns. By week’s end, however, warmer, sunny weather, and the expectation of the planting of a record large crop sank prices toward a new low close near $5.22 per bushel. As usual, it’s difficult for farmers to achieve high prices and good weather at the same time.
 
Gasoline gears up for summer

After hitting a three-month low last week, gasoline futures have rebounded as the market shifts its attention to the summer driving season, which will soon mark an increase in driving and gasoline demand.
 
Gasoline consumption this summer is expected to be the lowest in twelve years, primarily due to increases in fuel economy, but analysts are hopeful that a stronger US economy could help boost demand. Better economic numbers this week, including the lowest number of new jobless claims in over five years, helped to fuel a rally that pushed gasoline prices as much as 10 cents per gallon above last week’s low.

Comments

44846GWP

I wouldn't sell China anything until they quit sending us crap they make.

Huron_1969

And we are the dummies that keep buying it

Contango

"I wouldn't sell China anything until they quit sending us crap they make."

We sell 'em increasingly worthless low yield U.S. govt. debt ($1.2 trillion USD) and they send us capital - good deal for us.

http://www.treasury.gov/resource...

"f you owe the bank $100 that's your problem. If you owe the bank $100 million, that's the bank's problem."

- J. Paul Getty

Huron_1969

I don't get the "they send us capital" part?

Contango

http://www.investopedia.com/term...

They are savers, we are spenders.

External debt to GDP ratios:

U.S.: 106%

China: 8.7%

http://en.wikipedia.org/wiki/Lis...

Huron_1969

I get all that, it's the bit where you say "they send us capital" that makes me scratch my head. Only a small percentage of the goods from china can be considered as capital while the rest is disposable products. US over borrows, distributes the money here, and a portion of it is spent back where we originally borrowed it from

Contango

There ya go!

We send 'em increasingly worthless fiat currency and also sell 'em increasingly worthless U.S. govt. debt and they send us "stuff" and capital.

WHAT A DEAL!

When, NOT if, interest rates go up, their trillion USD U.S. Treasury holdings will decrease in value.

Before the housing crash, the Chinese used to to buy Fannie and Freddie mortgage backed securities, but they smartened up.

Now 95% of U.S. housing is financed by the Federal Reserve as part of QE.

The Big Dog's back

Kinda hard to be a saver in China or here for that matter when all the money funnels to the top in both countries.

Huron_1969

It gets to the top via the consumer. We would have a lot more control if we learned to control ourselves

We are a train wreck in progress and it's gonna hurt

Contango

The rich just keep getting richer 'cause they tend to buy assets that appreciate.

OTOH, the poor tend to buy assets that depreciate in value.

http://www.bloomberg.com/news/20...

From a political perspective: "Obamny" won. IOW - It doesn't matter.

The Big Dog's back

"The poor buy "assets" that depriciate in value." Like food, clothing, etc.

Contango

BD writes:

"The poor buy "assets" that depriciate in value."

What's "depriciate"? :)

swiss cheese kat

SMH.

KURTje

Your opportunity is now! Perrenials are up. Soil tilth is great. Some garden in. More trees ordered for small orchard. Rabbits being kindled. Throw gold away & make your future. Wood from winter is seasoning also. Its that E-z.

Contango

In the end there's no escape; socialists tend to confiscate the easy liquid assets (savings, pension plans, etc.) and then come after the illiquid ones (property, food stuffs, etc.).

"Cut off from global bond markets since its 2002 default, Argentina needs farm revenue to help finance public spending increases ahead of October legislative elections."

http://www.reuters.com/article/2...

The Big Dog's back

Capitalists confiscate everything.

KURTje

Moderators have removed this comment because it contained Off-topic comments.

Contango

"When life looks like Easy Street, there is danger at your door."

http://www.youtube.com/watch?v=T...

The Big Dog's back

The same companies who ran sweatshops here now export them to other countries.

Contango

DERP!

Good morning Sunshine, have a fun day of nonsensical griping and complaining! :)

KURTje

Moderators have removed this comment because it contained Off-topic comments.

KURTje

Sure weaklings....