Crap, here I go on a pig wreslting match again.  Sorry, guys.

You completely didn't answer the question.  Lets try a specific scenario;  Tyson contracts half of the cattle they need.  According to you, they can then simply lower their prices they pay for cattle on the cash market because their needs are half met.  However, also according to you, there is competition between the packers for the same cattle and prices can't simply be lowered or they won't get the cattle bought. 

Please try to explain this as I'm sure there are a few readers who are considering joining R-CALF and need just one more nudge.