COW ETF Is Up 13% in 6 Months as China Imports 81% More Lean Hogs


by Matt Badiali, Banyan Hill

Apr 8, 2019


If you made this trade, you made good money.


But there are larger gains comingÖ


Back in September 2018, we talked about how Hurricane Florence set up a big trade in hogs. If you took our advice, congratulations!


As you may know, Hurricane Florence caused widespread flooding and destruction in North Carolina. Eastern North Carolina has one of the largest concentrations of hog farms in the U.S.


We took a historical view of the potential from Hurricane Fran in 1996. That stormís impact sent hog prices up 60% in six months.


We told you to buy shares of a livestock exchange-traded fund (ETF): the iPath Series B Bloomberg Livestock (NYSE: COW). Shares were around $47.75 when we published our essay.


Shares hit a recent high of $53.87 on March 21. Thatís a gain of 13% in six months.


Lean Hog Prices Doubled Since 2018


You can see the chart of COW here ... [chart]


Thatís outstanding work Ö but I donít think itís over yet.


You see, lean hogs are just off their lowest price since 2002. The price of 100 pounds of lean hogs bottomed in August 2018 at $36.71.


Since then, the price doubled to $76.68 per 100 pounds. That price could easily go higherÖ


An Increase in Hog Imports to China Will Drive Prices Higher ...


more, including chart†