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Conman: "1. Under this scenario, SH, the formula market is a lid on prices. None of the supply in the formula market can cause the market price to go up. It is a lid on prices."

Since you are so prone to talking in generalizations, presenting theories, and making statements without ever having to back your position with supporting facts and examples, let's see if you are capable of actually supporting your position for once.

We will use the above statement as a starting point considering that virtually every post you have made since you graced this forum with your presence has been related to ibp/Tyson "manipulating markets".

At the risk of your crying foul and stating that you were/are being taken out of context, I'd like you to answer a few questions. This is also a test to see if you can answer a question honestly that I believe would support your bias and whether or not you even have a basic understanding of the issues we discuss here.

I have said it before and I meant it, I think you are a complete phony but I still want to believe that you can actually contribute something useful to these debates even if our opinions agree.


1. When you refer to the "formula" market, are you referring to those cattle that are sold by a "grid pricing" method that uses a weekly weighted average of the cash price the week prior to delivery as a formula to determine the base price for the "grid pricing"?

Yes or no?



2. Do you agree that "grid pricing" is a mechanism by which feeders can sell their calves to receive grade and yield premiums and discounts for their cattle as opposed to the cash market?

Yes or no?



3. You said that "none of the supply in the formula market can cause the market price to go up". I am assuming by "market price" you mean the cash market for all of the major packers. Is that correct?

Yes or no?



3b. Or did you mean that ibp's "market price" (cash market) would not go up due to the cattle that they have already purchased in the "formula market"?

Yes or no?



4. Do you believe that Tyson uses formula cattle to manipulate the cash market?

yes or no?



5. If so, can you explain how Tyson uses formula cattle to manipulate the cash market?


6. Can you explain your statement that "the formula market is a lid on prices"? Explain how the "formula market puts a lid on prices" and the process in which Tyson uses "formula cattle to manipulate the cash markets".



I am going to try to give you the benefit of the doubt here Conman and see if you can actually support your position with something more substantial than "generalizing statements" and "theories".

So show us what you got. Bring everything you have to support your position on this issue once we have absolutely defined it with your answers to the above questions.



~SH~
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