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Prices and supply

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Econ101

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Big Muddy rancher said:
If so called supplies are tight why are US steer carcass weights up this year? Is this a case of packers using captive supplies to move prices higher?

I don't really understand your question, BMR. Can you please elaborate? Before you answer that, think about all the businesses that these guys are in.
 

Big Muddy rancher

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Econ , Carcass weights are moving higher. That usually happens when feeders are waiting for higher prices and not selling. It usually backfires because they add more tonnage and further depress prices. Why are the feeders/ packers holding these cattle to higher weights with record high prices?
 

Econ101

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Big Muddy rancher said:
Econ , Carcass weights are moving higher. That usually happens when feeders are waiting for higher prices and not selling. It usually backfires because they add more tonnage and further depress prices. Why are the feeders/ packers holding these cattle to higher weights with record high prices?
I thought that was the gest of your question, but I wasn't sure. Do we have any feeders out there that can tell us what is happening on the ground? I have my own suspicions of why this might be the case but let us hear it from a feeder.
 

cowzilla

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THERE'S A LOT OF CHEAP FEED OUT THERE BOY'S :!: Your can be a little braver at putting on those extra cheap pounds if you think the market will hold ( or is it still gaining ? ) :)
 

Jinglebob

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cowzilla said:
THERE'S A LOT OF CHEAP FEED OUT THERE BOY'S :!: Your can be a little braver at putting on those extra cheap pounds if you think the market will hold ( or is it still gaining ? ) :)

Would this be where the phrase "cheap corn makes cheap cattle" comes from?
 

cowzilla

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JINGLEBOB ; Don't know about that. But take cheap corn, empty pen,and a feedlot owner with Stardust in his Eyes and the last thing you have is cheap cattle. You will have a few cow calf guys with smiles on there faces :D
 
A

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JB: "Would this be where the phrase "cheap corn makes cheap cattle" comes from?"

You're absolutely right Jinglebob!

Cattle need to be sold when they are finished. Nothing will tank a good cattle market faster than feeders backing cattle up while holding out for better prices.


~SH~
 

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