Where’s The Beef?

Several factors have made livestock an interesting investment as of late. An extreme wave of heat throughout the Midwest has increased cattle deaths. These deaths also come after ranchers thinned their herds throughout 2008 and 2009, due to the global recession. Seasonal demand for pork bellies and bacon has helped buoy prices. Finally, the Russian wheat crisis has created renewed interest in commodity investing, pushing asset prices higher. Pork belly prices have surged to record highs and cattle futures have risen just about 5 percent in July. Over the past year, the livestock sector has risen nearly 50 percent. These conditions have created a bullish future market for livestock. Investors wanting to add livestock to their portfolios can do so with the iPath DJ-UBS Livestock ETN COW and UBS E-TRACS CMCI Livestock ETN UBC.