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From: TSS (
Subject: DAILY COMMODITY MARKET COMMENTARY Thursday, November 11, 2004 15:31 GMT (MEATS $ MAD COWS)
Date: November 11, 2004 at 10:45 am PST

DAILY COMMODITY MARKET COMMENTARY Thursday, November 11, 2004 15:31 GMT
Daily Report
by Traders Exchange Corporation


Meats: Cattle prices have gotten slammed recently and we would continue to advise traders to position in long term puts as we advised before the recent sell off. Cattle markets have been slammed on the daily charts but on weekly and monthly charts we have much further to go. It could be the world is waking up to the fact that the USDA testing methods for Mad Cow (BSE) here in the United States is pathetic. The U.S. Cattle industry would love to see the borders be reopened to Japan because before the ban the U.S. exported 1.4 billion dollars worth of cattle to Japan. Japan tests every cow for human consumption and the USDA test nothing, would you want U.S. cattle probably not. High Prices and Weak Fundamentals. The rest of the commentary will remain the same and maybe the USDA will get up to par with the rest of world and stop trying to cut corners, who cares if testing would add a few cents per pound. Human safety is a little more important. Let's touch base on Japan they imported last year about 1.3 billion dollars worth of beef from the United States. Japan has banned U.S. Beef because of the Mad Cow found in Washington State last December. Japan tests 100 percent of all cattle for human consumption and Europe tests 1 in 4. What does the USDA test here in the Unites States??? The European Comm.'s risk assessment of the U.S. states that young age at slaughter makes it unlikely that full clinical cases could be detected. Half of the U.S. cows don't make it past 4 here in the U.S. before being turned into hamburger meat. Europe test about 2000 times more cattle then what the U.S. does. Testing of every cow slaughtered for human consumption in the U.S. is the only way to ensure the safety of the American people and foreigners that import. What happened in Washington last December of discovering Mad Cow Disease is not surprising what is surprising is that the inadequacy of our testing program actually found it. Traders should avoid the long side of this market and build long term put positions. Live and Feeder Cattle are still trading near historical highs when they should be at historical lows...



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