We invested in a new theme in our portfolio last week by going long ‘meat shortage’. Is this just another cowspiracy theory? We think not. ‘Tyson Foods Board Chairman, John Tyson, took out a full-page ad in The New York Times on Sunday warning the country that a meat shortage is coming to grocery stores nationwide, as “the food supply chain is breaking” amid the COVID-19 pandemic.’
How does one go about getting exposure to this theme? We took a long position on the Ipath Livestock Index COW on 29 April. Our entry price was $30.40. The fundamental reasons for a meat shortage are compelling and we have seen significant buying volume enter the frey over the past week. We believe meat shortage is another theme to look at due to the lack of supply reaching the grocery stores in the U.S.