Bulls may actually be fuk via /r/wallstreetbets #stocks #wallstreetbets #investing

Bulls may actually be fuk

So I keep reading bulls are fuk. I couldn’t understand why so I decided to dig shallowly into the cattle world to find out. I first checked live cattle data from all across the internet. Live cattle future prices went from a low of $86.50 on April 19 2020 to a high of $138.90 on December 26 2021, almost doubling in that time. It amazed me that while most were celebrating the 4/20 holiday, spectators started grabbing up all the live cattle they could get. It peaked my interest so I googled for another 10 minutes.

I found an article from successful farming linked below that states “Improved demand prospects as COVID-19 numbers slid into the midsummer helped provide longer-term demand expectations.” As it turns out live cattle are also a cynical commodity that tend to boom in the summer grilling months and wane during the winter holidays. But there were no pullbacks in the 2021 cycle. It led me to an article on thepigsite which stated "The slaughter has been extremely high, said Joe Kooima, commodity broker at Kooima Kooima Varilek Trading Inc. Its just the market anticipating a cattle cycle where we've had enough go to slaughter, there's not going to be as many numbers."

The uptick in demand for cattle caused prices to boom while there didnt seem to be enough supply to meet it. It led me to an article from thecattlesite confirming that point that states “Consumers have continued to stock up on groceries as they hunker down at home to curb the spread of the Omicron-variant. Denis said demand over the last five months has been as high or higher than it had been in March 2020 at the beginning of the pandemic.”

My interpretation of this data suggests that more cattle will in fact have to be culled to keep up with demand and possibly bulls are becoming harder to find. I’m sure we have all noticed the reduced selection and increasing prices. Bulls truly are fuk and it makes me happier to be human.




Submitted January 17, 2022 at 08:35AM by somerandomguy101010
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