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Article: Overreactions leave room for meats. (sustained demand for meat despite price changes) (column)
- Article from:
- Futures (Cedar Falls, IA)
- Article date:
- August 1, 1991
- Author:
CopyrightCOPYRIGHT 1991 Summit Business Media. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Overreactions leave room for meats
The release of the June 1 Hogs and Pigs report sent livestock futures on a roller coaster that took hog prices to the bottom of a big hill and back up.
The sell-off was a result of the quarterly government report telling traders the nation's pig producing factory was 6% larger than last year rather than 3% as the trade expected.
Within a week, the nearby contract, buoyed by continued strong cash bids, regained the lost territory. Deferred contracts remained nearly $3 below pre-report price levels.
Around that time, cattle prices also began to pull up out of the gutter.
This time it had less to ...