RM: "Doesn't a SURPLUS of raw materials mean ALL the manufacturers can buy all they need at what ever price they want to pay????????????"
Only if you have more raw materials (live cattle) than you have manufacturers (packers). In Canada's case, that was true when the border closed and what were they doing to accomodate that?
EXPANDING SLAUGHTER CAPACITY!
That is not true in the United States. We have enough slaughter capacity to cover our own cattle and Canadian live cattle imports.
WHERE DO YOU THINK CANADIAN CATTLE WERE BEING SLAUGHTERED BEFORE THE BORDER CLOSED?????
Hello?
Once again Robert Mac, the obvious is too obvious for you!
The only way your market manipulation conspiracy theories would have any merit is if the large packers were not competing with eachother. The fact that live cattle prices trend with boxed beef prices proves the falacy of that ridiculous notion.
An increase in supply does not mean the packers can pay whatever they want. We have fluctuations in supply every single day and guess what packers still have to pay according to what the price of retail beef is minus their processing costs and still realize a small profit if possible. Sometimes they have to buy cattle at a loss but that is only short term until cattle prices fall in line with retail beef prices.
THE FACT THAT PACKER MARGINS EVER FALL INTO THE RED PROVES WITHOUT DOUBT HOW FLAWED YOUR PACKER MARKET MANIPULATION CONSPIRACY THEORIES ARE.
Would packer willingly go into the red if they could control cattle markets?
What don't you understand about live cattle prices trending with boxed beef prices? Do you really need to see a chart to show this???
Is the retail price affected by an increase in supplies? Of course it is but that doesn't allow the packers to pay any price they want to pay. It forces them to pay less due to the corresponding price of beef. If that was not true live cattle prices would not trend with boxed beef prices would they?
I must be a complete idiot to go over this and over this with you. You don't want to know the truth, you want to blame.
"BWAME DA PACKAH"
RM: "That's why the price producer receives is SUPPLY sensitive!!!!!"
There it is, the ol' R-CULT "supply and supply" theory!
The price producers receive is also "DEMAND" sensitive.
Demand is a price quantity relationship!
MORE BEEF SUPPLY EQUALS REDUCED RETAIL BEEF PRICES TO MOVE PRODUCT. REDUCED RETAIL BEEF PRICES TO MOVE PRODUCT MEANS LOWER FAT CATTLE PRICES TO REFLECT THOSE LOWER BEEF PRICES?
Are you getting this? Am I going too fast?
RM: "The $1.3B in exports doesn't mean a darn thing to producers, if there are TOO MANY CATTLE FOR DEMAND !!!"
What an absolutely ridiculous statement!
First, the $1.3 Billion is not the value of exports alone. It is the net value between imports and exports.
Secondly, if we have too many cattle for demand, our export market becomes that much more important to move those extra cattle.
OUR EXPORT MARKETS ARE IMPORTANT NO MATTER WHAT THE SUPPLY BECAUSE IT CREATES MORE DEMAND!
For a guy who sells retail beef, I can't believe what you type sometimes.
RM: "Did not the packers raping of the Canadian producer and the packers selling that inexpensive Canadian boxed beef into the USA market at record prices help make those record profits???"
Didn't those same packers that own the U.S. plants that used to slaughter those Canadian cattle have to close plants and shut down shifts to accomodate for the lack of cattle?
WHAT DO YOU SUPPOSE THAT DOES TO PROFIT MARGINS???
Once again, you only see what you want to see. You can't ever see the bigger picture. Typical of someone who is driven by blame!
~SH~