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Open Canadian border arrives this week

RobertMac

Well-known member
How do you figure packers are saving a million dollars a day?

A $10/cwt drop in fat cattle prices would be at least $100.00
$100.00 times 123,000 head/day would be....
oh, wait....that would be $12,300,000/day
Thanks for the correction, BMr...you and Ms Tam sure are good at your ciphering...I got to find that calculator!!! :oops:
 

Big Muddy rancher

Well-known member
RobertMac said:
How do you figure packers are saving a million dollars a day?

A $10/cwt drop in fat cattle prices would be at least $100.00
$100.00 times 123,000 head/day would be....
oh, wait....that would be $12,300,000/day
Thanks for the correction, BMr...you and Ms Tam sure are good at your ciphering...I got to find that calculator!!! :oops:

Maybe the drop in price was forced by a glut of over priced meat and the coresponding drop in fat cattle was because beef was not moving at a price to support that $10 higher price.

Maybe the packers lost it beforew the producers.
Guess you make lots of money on you meat sales because you don't have to buy your animals you get them for FREE.
 

RobertMac

Well-known member
Big Muddy rancher said:
RobertMac said:
How do you figure packers are saving a million dollars a day?

A $10/cwt drop in fat cattle prices would be at least $100.00
$100.00 times 123,000 head/day would be....
oh, wait....that would be $12,300,000/day
Thanks for the correction, BMr...you and Ms Tam sure are good at your ciphering...I got to find that calculator!!! :oops:

Maybe the drop in price was forced by a glut of over priced meat and the coresponding drop in fat cattle was because beef was not moving at a price to support that $10 higher price.

Maybe the packers lost it beforew the producers.

Boxed beef prices didn't support the high fat cattle prices, so packers slowed USA kills and shipped in as much Canadian cattle and beef...where their margins were better. The slowed processing backed up cattle in feed lots(increasing carcass weights) coupled with increased production from the northern plains because of improved conditions and increased marketing from the southern plains because of drought conditions. When supply increases without a corresponding increase in usage, the price of supply goes down. The largest supply is in the USA, so a decrease in USA fat cattle prices has the largest impact on packer margins. If you had Canadian packers that worked to open more foreign markets for your beef, the USA packers wouldn't have the captive Canadian cattle to use to influence USA fat cattle prices.

BMr said:
Guess you make lots of money on you meat sales because you don't have to buy your animals you get them for FREE.

My beef enterprise buys cattle from my cattle enterprise at $1.30/lb carcass weight. BUT...because I own both enterprises and the retail sales enterprise, I make 'lots of money'!!!! :cowboy: :D :D :D I learned that from Tyson's poultry industry!!!!!!!!! :eek: :shock: :lol: :lol: :lol: :lol: Maybe more cattle producers should take note!!!!! :? :???: I don't think Tyson is going to change their good thing...even for beef!!!!!!!!!!!!!!!! :mad:
 

Big Muddy rancher

Well-known member
Geez Robert Mac the packer blamers are gonna get on your case for captive supplies. I think I heard John Tyson say if Robert Mac can do it why can't I.

Robert do you still pay you self $1.30 a pound if your demand drops and you can't sell beef ? Or do you put the retail end of your enterprise into bankruptcy just to show a profit on the production side?
 

agman

Well-known member
RobertMac said:
Agman, Are these Canadian cattle and beef a burden on our supply?
I remember when you said that if our export markets opened the same time as the Canadian border opened, live cattle prices would remain strong...our export markets aren't open! :? I guess that means Canadian cattle and beef are having a negative impact on USA live cattle prices. Packers are saving...what...about a million dollars a day???
I guess BMr missed that.

Yes RM, you have my previous statement correct and I stand by that statement. Imports without our export market open have a negative price impact. That said, the domestic market is many times the size of imports so what happens with the domestic supply far outweighs imports whether we export or not. That is an indisputable fact.

With the record losses packers have recorded you seem to miss the point that product values also go down which wipes out those big profits you think always exist.
 

Econ101

Well-known member
agman said:
RobertMac said:
Agman, Are these Canadian cattle and beef a burden on our supply?
I remember when you said that if our export markets opened the same time as the Canadian border opened, live cattle prices would remain strong...our export markets aren't open! :? I guess that means Canadian cattle and beef are having a negative impact on USA live cattle prices. Packers are saving...what...about a million dollars a day???
I guess BMr missed that.

Yes RM, you have my previous statement correct and I stand by that statement. Imports without our export market open have a negative price impact. That said, the domestic market is many times the size of imports so what happens with the domestic supply far outweighs imports whether we export or not. That is an indisputable fact.

With the record losses packers have recorded you seem to miss the point that product values also go down which wipes out those big profits you think always exist.

Agman, why did the big packers push up the prices of cattle to where their margins were not "profitable" in the first place?

The combination of the packers were in control of this through their pricing policies on both ends.

What is the convenient excuse this time?
 

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