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Monday, 22 October 2012

ETF Lean Hogs - Buy

The supply constraints on food are having wide-ranging effects. The limitations have been caused by drought in the US and Russia, coupled with extreme heat damage. Corn and soyabeans have been hit hard, which has had a knock-on effect on the prices of other foodstuffs. UK company Cranswick drew attention in its recent update to the effect of rising pig prices, pushed up by the cost of feed. There is also upward pressure from growing demand. In Europe, farmers have been cutting herds because of the rising costs and new welfare regulations, due to be introduced in January, on how sows should be housed.

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