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Saturday, May 05, 2007

Developing Story

I'll be following this story closely.

Fillers in Animal Feed Is Open Secret In China

Apparently, Chinese suppliers of pet food, grains and medicines routinely use poisons as fillers. This grain has been fed to US poultry. If those chickens end up having to be killed, I expect we'll see poultry prices rise.

But has this substandard grain also been fed to US cattle? If so, what happens to cattle futures?

Also, this could throw a monkey wrench in US/China trade. If they're poisoning us, we can expect calls for much stricter inspections on Chinese food imports. The Chinese will likely reply in kind. I would think that would be bad news for importers, bullish for some prices, bearish for others.

Read about more about this developing story by CLICKING HERE.


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