Analysts predict that meat prices will reach such record highs this spring that consumers may refuse to buy meat.
By Liz Miller
On Monday, financial analysts at Bloomberg L.P. predicted that meat prices are set to reach record highs as early as June, and that many consumers may reduce their meat consumption as a result. The sharp spike in retail prices is due to factory farms reducing their slaughters to the smallest size in decades, a move that was forced by increasing feed costs connected to the need for more ethanol. Researchers estimate that domestic meat supply may plummet to a 13-year low as a result of the push by former President George W. Bush to increase ethanol levels. With the unemployment rate nearing a 26-year high, analysts expect consumers to shy away from exorbitantly overpriced meat products.
Steph, you of course, are correct. I want to see this contract clear the programmed selling that hits this market at 29.80 (every single time).. then we can take a crack at assaulting the 30.50 area... beyond that.. it's sideways.. I am still confident that commodities have more room to run on the upside prior to getting slammed and meat is going to get some seasonal support. Let's take it one day at a time. When the floor traders run this puppy, they'll suck a lot of short covering and perhaps some fresh buying.. it could be fun. Good analysis on your part. dcp