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Noooooooooooooooo! How can they do this to us?

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July 24, 2014 – Comments (1) | RELATED TICKERS: COW , MOO

Mmmmmmm butter.  Butter makes everything better.  We just received this piece of breaking news...

Butter Surges to 16-Year High

http://www.bloomberg.com/news/print/2014-07-23/butter-surges-to-16-year-high-as-u-s-exports-cut-reserve.html

At least we still have bacon.  What doesn't taste better with bacon on it? 

http://youtu.be/0YYcQitVp6E

Wait a second...

Bacon Prices Are Going Bananas

http://www.businessinsider.com/bacon-prices-inflation-2014-7

Oh the humanity!  OK, I guess that I'll have to settle hanging out in my backyard and grilling a nice juicy burger...

Bull market for beef; cattle futures hit all-time highs

http://americasmarkets.usatoday.com/2014/07/22/bull-market-for-beef-cattle-futures-hit-all-time-highs/

Noooooooooooooooo!  How can they do this to us?  I'm afraid to Google beer prices.

To tie this all back into investing, I think that this actually might be a good time to look into buying stock in meat processors and perhaps restaurants.  Their earnings are going to be squeezed in the short run, perhaps for the rest of the year, but as the old adage goes the best cure for high prices is high prices.

We are forecast to have a record corn crop this summer so feed prices will be low and meat producers will have a tremendous incentive to increase supply.  The pricing picture for 2015 for beef and pork will likely be much better, especially when they get the Porcine Epidemic Diarrhea Virus (ewwwwww) under control. 

I have already started a small position in a Canadian meat company, Maple Leaf Foods (MFI:Toronto).  I think that it will benefit tremendously in 2015 from this trend.  I would like to add to my position on weakness when it announces results for the rest of 2014. Anyone else have amny trades along these lines that they'd like to share?

Jason

1 Comments – Post Your Own

#1) On July 25, 2014 at 10:56 AM, EnigmaDude (85.74) wrote:

Butter, Bacon, Beer, and Beef.

These are just a few of my favorite things!!

And I too have thought that the corn glut should lead to a good buying opportunity. Maybe for ethanol producers? Not sure how to play that one. 

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