COW ETF Is Up 13% in 6 Months as China Imports 81% More Lean Hogs

If you made this trade, you made good money.

But there are larger gains coming…

Back in September 2018, we talked about how Hurricane Florence set up a big trade in hogs. If you took our advice, congratulations!

As you may know, Hurricane Florence caused widespread flooding and destruction in North Carolina. Eastern North Carolina has one of the largest concentrations of hog farms in the U.S.

We took a historical view of the potential from Hurricane Fran in 1996. That storm’s impact sent hog prices up 60% in six months.

We told you to buy shares of a livestock exchange-traded fund (ETF): the iPath Series B Bloomberg Livestock (NYSE: COW). Shares were around $47.75 when we published our essay.

Shares hit a recent high of $53.87 on March 21. That’s a gain of 13% in six months.

Lean Hog Prices Doubled Since 2018

You can see the chart of COW here:

That’s outstanding work … but I don’t think it’s over yet.

You see, lean hogs are just off their lowest price since 2002. The price of 100 pounds of lean hogs bottomed in August 2018 at $36.71.

Since then, the price doubled to $76.68 per 100 pounds. That price could easily go higher…

An Increase in Hog Imports to China Will Drive Prices Higher

Earlier this month, China announced that it may increase its pork imports from the U.S.

In 2018, the giant Asian nation imported 166,000 tons of pork from the U.S. However, in 2019, China plans to import 300,000 tons.

That’s an 81% increase.

It’s also more hog imports than China has ever bought from the U.S. In 2011, China imported about 250,000 tons of pork from the U.S.

Back then, hog prices averaged about $84 per 100 pounds. At peak prices, they’re over $100 per 100 pounds.

That’s what I expect to happen in 2019.

Chinese imports should drive the price of hogs 10% to 25% above the current price.

That will be great news to farmers in North Carolina trying to recover from hurricane damage. And it will be great for investors holding COW in their portfolio. The ETF holds about 40% of its value in hogs, so it will benefit from the run.

There’s still time to get into the iPath Bloomberg Livestock ETF (NYSE: COW). And if you already own it, hang on to it!

Your investment is about to get a rocket boost.

Good luck and good investing,

Matt Badiali

Editor, Real Wealth Strategist

 

Previous Post
Next Post

Comments

bolia Orb Hanging Lamp

That is a very good tip especially to those new to the blogosphere.

Simple but very accurate info… Thanks for sharing this one.
A must read post!

สูตรบาคาร่า ufabet

This is very attention-grabbing, You’re a very professional blogger.
I have joined your rss feed and stay up for in search of more of your magnificent post.
Additionally, I’ve shared your website in my social networks

Idn Poker

Fabulous, what a blog it is! This weblog provides valuable information to us, keep it up.

indoslot

Thanks for sharing your thoughts about games.
Regards

mobilier cresa

Am gasit pe website-ul http://www.mobilierdelagraveromania.ro mobila
perfecta pentru gradinita noastra din orasul Botosani.

yurtdışından hasta nasıl getirilir

Hi there, I enjoy reading through your post.
I like to write a little comment to support you.

m88

This design is spectacular! You definitely know
how to keep a reader entertained. Between your wit and your videos, I was almost moved to start
my own blog (well, almost…HaHa!) Excellent job.
I really enjoyed what you had to say, and more than that, how you presented it.
Too cool!

translation

Pretty! This was an extremely wonderful post. Many
thanks for supplying this info. https://www.feedbooks.com/user/7341201/profile

Marcell Spice

I’m no longer sure where you’re getting your information, but good topic.
I needs to spend a while finding out much more or working out more.
Thank you for great information I used to
be on the lookout for this info for my mission.

car insurance ontario during covid 19

Excellent article! We will be linking to this great content
on our site. Keep up the good writing.

Walton Mccurtain

Thanks for sharing your info. I really appreciate your efforts and I
will be waiting for your next post thank you once again.

http://ladnalaska.zgora.pl/post/pytanie-jak-y-gos-jego-w-oddali-may-bardzo-brudny-kapelusz-przywizany

Howdy! Do you use Twitter? I’d like to follow you if that would be okay.
I’m definitely enjoying your blog and look forward to new posts.

m.fun88

I just couldn’t depart your web site prior to suggesting that
I extremely loved the standard info an individual provide in your visitors?
Is going to be again continuously in order to check out new posts

Leave a Reply

Your email address will not be published.