• If you are having problems logging in please use the Contact Us in the lower right hand corner of the forum page for assistance.

SH you are a self proclaimed expert of captive supplies

Help Support Ranchers.net:

I bought over 190% of my mineral needs last week and sold them at a profit. Maybe this is what "Bass Boy" is doing?
 
Sandhusker said:
SH,"ibp is not going to purchase 90% more cattle than they can slaughter.

Here is the paragraph again for your perusing convenience;

"Bass also testified that during some weeks IBP owned as much as 190% of its kill needs, nearly double what they'd need for their slaughter plants the following week. When that happened Bass told his buyers to lower their bids for cash cattle."

What's the explanation? I'm all ears.
Click to expand...

Listen up ears. There were willing buyers to sell those cattle. If feedlots had cattle and Bass offered a price and they all said yes, Bass was man enough to honor the set price. His price must have been higher than Cargill or other competitors.

The fact that he then would reduce the bid was exactly what any business does if they have their needs met and are willing to gamble on the open market.

The feeders have the option of passing on a bid hoping it will be better the next week. The weeks they sold to IBP they felt that was the best they were going to do.

When the price fell the next week because IBP was out of the market except for 10% of their needs, how did IBP benefit themselves from it?

I think the board has made up its mind about who is on the ball and who fell off long ago.
 
For the last time, ibp did not contract more cattle than they could slaughter, PERIOD.

"Bass also testified that during some weeks IBP owned as much as 190% of its kill needs, nearly double what they'd need for their slaughter plants the following week. When that happened Bass told his buyers to lower their bids for cash cattle."

Bruce Bass contracted 95% of a two week kill within a one week period.

SO WHAT??? BIG DEAL!!!!

HE BOUGHT THOSE CATTLE FROM WILLING SELLERS.

EXPLAIN THE RELEVANCE OF IBP BUYING 2 WEEKS KILL WITHIN IN ONE WEEK???

WHAT'S YOUR POINT AS IF YOU ACTUALLY HAD ONE?

He did not contract more cattle than he could slaughter, he did not double the production of his packing plants, and that is all that is relevant.

Bruce did not contract 190% of his needs within a week, He contracted 95% of his needs in two weeks.

Did you think those cattle would spoil because they weren't killed the week they were bought??? LOL!

If you think you have a point, MAKE IT!


Sandblaster: "So reducing 1/3 of the demand with a constant supply will have no effect on prices?"

The demand has not been reduced by 1/3. The supply has been reduced by 1/3 because 1/3 of the cattle has already been purchased.

I am going to give you the benefit of the doubt here and assume you are a smarter person than you let on disguised as an idiot. Nobody can be that stupid.



~SH~
 
SH, "Bruce Bass contracted 95% of a two week kill within a one week period."

:lol: :lol: :lol: :lol: What a reach! You sure he didn't contract 47.5% of a month? Maybe it was 4% of a years worth?

You don't think there is anything strange that contracting more than he needed allowed him to lower his bids - thus lowering the cash prices that were the basis for future contracts?

You simply refuse to see the obvious.

I'm thru wrestling.
 
Sandblaster: "You don't think there is anything strange that contracting more than he needed allowed him to lower his bids - thus lowering the cash prices that were the basis for future contracts?"

There is nothing strange about lowering your price when your needs are met.


Sandblaster: "You simply refuse to see the obvious."

You are the one who can't see the obvious fact that anyone is going to lower the price they pay as their needs are met.


Sandblaster: "I'm thru wrestling."

I knew you didn't have a point and I knew you wouldn't explain the relevance of ibp buying two weeks slaughter in a one week period.

All you can do is create the "ILLUSION" of impropriety by asking your questions that lead to nowhere.

You are thru asking questions because you can't support your position.

No surprise there.



~SH~
 
So if I understand you correctly, Sandhusker, what you are saying is that you should try and buy your supplies on a week to week basis. What happens if not enough fed cattle show up to buy. How much would it cost you to shut down production so that you could wait until enough fed cattle show up? I usually buy enough feed to feed the cattle for the whole winter. If I did what you are proposing, I would buy only enough for the month I'm in and wait until next month to buy that month's feed supply. what happens if I can't get what I need when I need it? The cows starve to death. Your logic doesn't make any sense.
 
SASH said:
So if I understand you correctly, Sandhusker, what you are saying is that you should try and buy your supplies on a week to week basis. What happens if not enough fed cattle show up to buy. How much would it cost you to shut down production so that you could wait until enough fed cattle show up? I usually buy enough feed to feed the cattle for the whole winter. If I did what you are proposing, I would buy only enough for the month I'm in and wait until next month to buy that month's feed supply. what happens if I can't get what I need when I need it? The cows starve to death. Your logic doesn't make any sense.
Click to expand...

No, Sash, you don't understand me correctly. The reason is that there is nothing that you can do to effect the price of feed in the future - you don't buy enough. IBP CAN effect the price of cattle in the future as thy buy 1/3 of all the fats in the country. Fred's locker down the street can't do this, they don't buy enough. IBP can because of the sheer volume they control

Most contracts are based on the cash price of the day of the transaction.
On the surface it looks like a square deal because neither party has a crystal ball to forsee future prices. However, since everything IBP does effects the markets, they can influence what the cash prices will be, thus effecting what that contact price will be. There's nothing the feeder can do to influence prices since there is none who deal in the volume IBP does. VOLUME IS THE KEY TO MAKING IT WORK.
 
So, what would you propose they do? Downsize their company just so they don't have such a big effect on the market?
 
SASH said:
So, what would you propose they do? Downsize their company just so they don't have such a big effect on the market?
Click to expand...

No SASH,

Sandhusker wants the feeders to get bigger! :) He wants the gov't to regulate, confiscate, and irritate any business that proves itself successful and finds the opportunity to expand.

He won't be happy until every person/business in the US is told who they can do business with. If I want to buy a John Deere made in Ontario, Canada instead of Moline, Illinois Sandhusker could possibly call the Import Beaucratic Police (IBP) and have me arrested. I'm sure they are under the jurisdiction of Judge Si'D'Bull.

Small minds worry about small problems........
 
Sandhusker wants the feeders to get bigger! He wants the gov't to regulate, confiscate, and irritate any business that proves itself successful and finds the opportunity to expand.
Click to expand...

The packers problem is that they need a guaranteed supply of fed cattle delivered every week. What we should do as producers is have an organization to set the price and guarantee delivery. Problem solved, now you just have to convince every fed cattle producer to sell through that organization and not sell directly to the packers. Good Luck with that. :roll:
 

Latest posts

Top