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LIVE CATTLE SUPPLY SYNOPSIS
Friday, August 13, 2010
by Patrick Vahid of Sonic Futures & Options
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Over the past several years, the Argentine government has implemented price controls in the cattle industry, that has put a strain in production, thereby reducing the overall herd. Compare 400,000 tons of beef exports in 2009 to nearly half of that in 2005, a year after the price controls started and was put in place keep inflation in check. Argentina is the third largest exporter of beef and a very important supplier to leading importers like Russia, Chile, Israel and Venezuela (among 100 countries in total). Along with the export market, Argentina is the largest per capita consumer of beef which has put a strain on local supply leading to a shortage. Heading into the winter market for the major markets in Europe and in the U.S., we expect also a seasonal increase in demand, thus if Argentina does impose a ban because of their internal market situation, we could see the cattle market fly past $ 1.00. However, Argentina does not necessarily have to implement a formal ban but rather be slow bureaucratically to issue export permits. This is very similar to the wheat market and what Russia did to make the price of wheat sky rocket. Request a free 2 week demo account of the Firetip trading platform. *There is a substantial risk of loss trading futures. Past performance is not necessarily indicative of future results.
Recent articles from this author
- How Bad is Our Economy - Wednesday, August 25, 2010
- LIVE CATTLE SUPPLY SYNOPSIS - Friday, August 13, 2010
- Euro Currency, E-Mini S&P, Live Cattle - Thursday, August 12, 2010
- Dollar Range - Wednesday, August 04, 2010
- Wheat Outlook - Thursday, July 29, 2010
About the author
Patrick Vahid is the market strategist at Sonic Futures & Options. Attending California State Polytechnic University, Pomona he majored in Civil Engineering and traded the stock market throughout high school, as well as college. After school, he became the senior engineer of a well established engineering firm, based out of Orange County California. Soon after, his passion for the markets out weighed the successful engineering career he had established and began his new endeavor as a trader at Sonic Futures & Options. After developing a steady base of clients who he worked with one on one, he became the senior market strategist at Sonic Futures, and focused mainly on short term trades that would adhere to his own personal proprietary trading strategies. He is known for being a young up and coming trader and is often known for his saying "taking risks and being risky are two very different things." He prides himself on managing risk, and focus primarily still on the oil market. He does follow seasonal trading in the grains, and delves into currency trading; however, his primary focus has always been the energies. Patrick can be reached at 800-341-7350 or Patrick@SonicFutures.com
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