Frank Petricca
Frank Petricca is writer of “Petricca’s Pick” focusing on a Long Term approach for commodity traders that have an interest in Long term accumulation. Frank has worldwide recognition spurring innovation that points to communicating a different way to approach ones investment portfolio using commodity instruments. Contact Frank at 312-690-7763.
Petricca’s Pick 01/18/2024
BUY APRIL HOGS
Hog futures are in fact trading close to my lower 25% parameter where Long-Term accumulation is recommended. Clients and subscribers should also note that my Long-Term trend following formula is UP. Please call for entry levels. 312-690-7763
PORK PRICES COULD SPIKE IN 2024, AND IT’S ALL TIED TO A NEW CALIFORNIA LAW
A new animal welfare law in California that took effect January 1st, mandating space requirements for pigs, cows, and chickens, has some livestock producers on edge, that could propel hog prices here in 2024.
The Farm Animal Confinement initiative, (Proposition12) requires sows to have at least 24 square feet of space with the ability to move and turn around. Most pregnant sows are kept in gestation stalls measuring two feet wide by seven feet long.
In Illinois, where the state’s pork industry is the fourth largest in the country, it’s a nearly $14 billion part of the state’s economy, according to the Illinois Pork Producers Association.
Fourth generation pig farmer Cheryl Walsh owns one of the state’s more than 2100 pig farms which will be impacted dramatically by the new law.
“The pigs, they don’t want that extra space. They really don’t. You can see in this barn how clean the animals are, they have no marks on them from fighting. Half of them is laying down, they’re really content. The only time they get up is to drink, or to eat, or if they have an itch they want to scratch,” she said.
With an expected reduced capacity of 30 percent and expensive infrastructure upgrades, Walsh said complying with this new law could put her out of business.
These new governmental regulations will cause significant price increases and supply chain disruptions in the coming months as hog numbers are already ominous at best.
Of the 75 million hogs in the U.S., the latest USDA Hogs and Pigs Report as of December 1st, notes 69.0 million were market hogs, while 6.00 million were kept for breeding. The total inventory is up slightly from a year ago, but breeding is down 3% from 2022.
U.S hog producers intend to have 2.90 million sows between farrow between December 2023 and February 2024, down 2% from a year ago.
In the Longer Term –
GLOBAL MEAT CONSUMTION WILL SOAR IN THE COMING YEARS!
Almost HALF of the world’s harvest is fed to animals. Globally, 90 percent of the ever-increasing soybean harvest goes for animal feed. Reduced meat consumption is needed to feed a world population of 10 billion people by 2050.
Meat consumption will absolutely contribute to the global food crisis in the coming years.
The chart below speaks volumes…
Subsequently –
Long-Term Hog accumulation could be a valuable addition to your investment portfolio in general. One needs to implement a Long-Term strategy to insure you are “In the Market” if and when this important commodity “Episodic Volatility” occurs.
Please call for Money Management Strategies that are so important when one considers an investment of this nature.
Remember there are four important components regarding my strategies…
There is no question that more that 90% of commodity investors lose money…
And it’s true that my strategies also incur drawdowns…
But – What I offer is a way to be “in the market” when major commodity moves occur.
My strategies require one to maintain –
Those of you that have an interest in additional details regarding my strategies should call me personally. 312-690-7763.
Would love to hear from you.
In the meantime,
Have a great year trading!
Best
Frank
Questions? Ask Frank Petricca today at 312-690-7763.