# Cattlegate



## Vol (Jul 5, 2009)

John Harrington...from DTN

Regards, Mike

http://www.dtnprogressivefarmer.com/dtnag/common/link.do?symbolicName=/free/news/template1&paneContentId=5&paneParentId=70104&product=/ag/news/topstories&vendorReference=0353b2fa-34a2-481b-912d-1cb46058ad3a&pagination_num=1


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## Tim/South (Dec 12, 2011)

Interesting read.

This is the first time I have heard the term "conspiracy" used in conjunction with the chaos in falling beef prices.

I have read where some believe is is payback for COOL failing to pass and another report it is connected to the water wars in our western states. We are not normally blindsided unless there is Mad Cow, Pink Slime or some other trigger.

Another opinion is that JBS Brazil (largest in the world, one of the largest in the U.S.) did not want Cool to pass and open the North American door for more imports.

It could be a natural economic event that consumers could not afford the high prices and bought more pork and chicken. That would tend to show early warning signs and not explode over night.

The bottom line is that meat packers are making a windfall and cattle producers are losing money.


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## somedevildawg (Jun 20, 2011)

Damn sure hasn't been reflected in the prices at the grocery store ..... Not yet anyway, I'm sure they will say they are "pumpin the gas in the tank"

Either way, I don't have cattle but don't really understand some of my cattleman friends attitude during the windfall. Have a good friend that confided he could sell ALL his cattle and pay off the farms and equipment loans in full, I said "do it, keep 20-30 and sell the other 800-900.....start over building the herd.....not going for it.....he did sell more than normal but I woulda "SOLD THOSE PORKBELLIES!" ( Trading Places, funny stuff)


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## hillside hay (Feb 4, 2013)

Does anyone really think that there isn't corruption and collusion everywhere in the markets? The only saving grace is their greed will do them in if the markets are allowed to operate as they should. Keep Hank Paulson and his ilk out of it that is.


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## Tim/South (Dec 12, 2011)

I have tried to find a link and can not. This was told to me back when grinding cows and bulls first declined in price.

The falling live prices began when the federal government refused to pay the contract by a company supplying beef for school lunches and other government programs. The banks backed them as long as they could because of the contract. Finally checks began to bounce at stockyards. The company bought mostly weigh cows and slaughter bulls. Lawyers became involved and the government said they would settle up.

From that point on cash prices for live cattle has fallen off a cliff. It is though the bankers and investors began having second thoughts.


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## JLP (Aug 5, 2013)

Every other commodity has been on a decline recently, corn beans, wheat, oil. My feeder cattle buyer warned me six months ago that a correction was coming. He couldn't predict when obviously, but it would appear he called it right


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## Tim/South (Dec 12, 2011)

We all knew an adjustment would come. That adjustment needed a trigger. Beef had slowed moving off the store shelf but enough moved to keep things rocking along.

No Mad Cow panic, no Pink Slime scare. It is hard for the live beef prices to fall off the cliff with out being nudged. All the reports were that cattle would do well for some time down the road.

Packers and retailers are making a killing right now. Just like big oil once they put the mom and pop stations out of business.

Are we being set up to expect our beef come from other countries because it may no longer be profitable to raise beef here, or that we can not meet the demand? I am not sold on that theory 100% but it would not surprise me.

There is a stranger in the wood shed some where.


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## Vol (Jul 5, 2009)

You know that we have always had corruption to deal with in this country.....but it seems like the last 20 years is unparalleled.

Regards, Mike


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## glasswrongsize (Sep 15, 2015)

Free market, when left alone, works fine. Supply and demand set a price that is fair. This country's policy of borrowing money and meting it out to the non-laboring dregs of society has been falsely propping-up the economy in-whole for a few years. There is no reason that the DOW is at 17xxx. I have personal knowledge of MANY food stamp recipients who buy meat (and other foods), that never take it out of the package before throwing it away. They must spend their money or lose it. Welfare creates a false demand on numerous items and a reflected price-hike due to supply. The money that creates the demand is borrowed and or is "printed" and does not actually exist. Pump printed money into Freddy or Fanny and have the gummit-back house loans and force banks to lend money to poor risks at low interest&#8230;there is a spike and eventual fall. Pump money into food stamps&#8230;same thing with food. With food, welfare rats are (partially) the cause of rising prices and create a false demand. People who paying for it (the majority of people-who fall between poor and rich- ) must make choices at the grocery store. The price effects the welfare class and the rich much less as it is either not their money or they have enough money to continue at any rate.

The liability group probably had all the steak the could eat and dope for dessert. I had stew for supper and some rotgut for dessert.
I know this is not a great analysis of this, but that is my rant for now.
73, Mark


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## Waterway64 (Dec 2, 2011)

I think cheap corn and feeders adding 2-30" lbs to slaughter wt is a big factor and one that will bite them eventually


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