The global rout in commodities finally hit cattle with futures off to the worst start to a year since 1980. The good news: The rout signals that your steak dinner could start costing less soon.
Cattle futures on the Chicago Mercantile Exchange have lost 7.1 percent in January, after touching a record in November and rising 21 percent in 2014, the most in four years. Aggregate open interest is at the lowest in more than five years.
The reversal underscores the diminished outlook for most raw materials, as a slowing global economy and a glut of staples ranging from crude oil to wheat sent the Bloomberg Commodity Index (BCOM) to a 12-year low last week. Cattle have tumbled 12 percent from the all-time high on Nov. 19, with ample supplies of pork and chicken offering consumers a cheaper alternative.
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