Cattle Herd Rebuilding From Drought

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Oct. 17 (Bloomberg) -- On today's "Futures In Focus," Greenhaven CFO Cooper Anderson discusses livestock futures with Alix Steel on Bloomberg Television's "In The Loop." (Source: Bloomberg)

Focus.

Today we are looking at lean hog and cattle.

I want to bring in cooper -- cooper, given how prices are elevated, do you want to be buying right now?

We raise livestock.

We look at margins.

Margins in cows and especially hogs are some of the highest we have seen.

That is the result of prices going so high.

Knowing that these are commodity markets, i would think that these margins would be here for not a whole all longer.

As such, for things to go higher from here, we would need to see the inputs,. otherwise the margins will go wider.

How does that claim is what is going on in the macro economy and the federal reserve?

Commodity move in their own world to a certain extent.

When you look at the hog market, there is an unprecedented number of noncommercial -- managed money has man -- entered that trait in a big way.

You have seen correlations go up a little bit.

You have seen it go up on the hog side with stocks.

The hog side of things -- what does that increase in positions tell you?

There was a lot of hot money and hogs -- in hogs that we have not seen to this point.

It is far higher than it has ever been.

It is pushing prices up beyond where fundamentals are.

There was a little bit of a virus issue this summer.

At the end of the day, when you look at the underlying holders, it seems like there is a lot of hot money in there right now.

Demand from the united states is holding firm.

How does that compare with demand from the rest of the world?

There really hasn't been a huge change to the export story.

This summer, domestic demand drove prices more than anything with the milder summer.

You had more barbecue.

What we you be on the watch out for in the new year?

Going forward, for meats, it will be a function of input costs.

With the harvest looking good in soybeans and corn -- the two main inputs for cattle and hogs -- if those prices stay the same, we may see livestock follow suit.

Cooper anderson joining us

This text has been automatically generated. It may not be 100% accurate.

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