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Napanee, Ontario | Quite a day in Fats.
I'm sure it's all just speculation tho... hocus pokus that will play itself out and we can all get back to chasing nickles around soon enough****
But In the meantime, an interesting article Novato put out over in market talk:
http://www.agrimoney.com/feature/will-beef-become-the-new-pork-in-c...
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"Chinese beef consumption is seen hitting a record 6.26m tonnes this year, growth of 5.1%, and 65,000 tonnes more than previously expected.
While still small by comparison with pork demand, that is enough to place China as the world's third-ranked beef consuming country, behind the US and Brazil.
Beef goldmine
The trend is having a big impact on the world beef trade, with China looking abroad for now to meet its taste for beef – proving big profits for those in the chain.
It raised to 550,000 tonnes its forecast for China's beef imports for 2014 - a 19-fold increase in three years, and promoting the country to equal fourth (with Hong Kong) among buyers.
Canada's exports to China rose six-fold to 24,373 tonnes, carcass weight, in 2013 although Australia is the top supplier, with a tripling to 154,834 tonnes slaughter weight, according to Rabobank.
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Also, whats going to happen to prices when AUS stops killing everything on 4 legs that Moos? We have record prices today, even in the face of:
"Austrailia's east coast drought, which has encouraged producers to increase slaughter rates, which hit a 15-year high of 9.1m head last year."
I'm not saying we are going to see fats move higher from here to Kingdom Come, but the story LOOKS good for these strong prices. Maybe they move higher, maybe not, but it seems like they are going to have a tough time getting back to 1.20's here in 2014 against this kind of information.
Annnnd, if guys want to keep a whole lot of heifers back, the price is going to have to go even higher yet...
Cattle numbers are going down everywhere in the world.... prices are going higher.... and the consumer is consuming more and more.....
well I'm not Bill Nye, but to me it sounds like i can go crack a beer or something.
Edited by OldMcdonald 2/26/2014 13:56
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1.49 in Chicago
