Wednesday, February 26, 2014

Cattle ETF Rallying

Above is the daily chart of the cattle ETF.  Since the beginning of February it has rallied a little over 10%, rising from 26.7 to ~29.7.  In the last few trading sessions we've also seen a big spike in the CMF, indicating a strong net inflow into the ETF.

The big reason for the rally is the drought conditions in Australia and Brazil, as highlighted in this piece from the Financial Times.