30% negotiated cash purchase price

[HDRider]

Feeder Flash With Corbitt Wall is pushing for 30% negotiated cash purchase price at each processing plants to facilitate better price discovery for market price.

https://www.youtube.com/watch?v=h3-fqI41e6c

 

[TennesseeTuxedo]

Sounds like a good idea to me.

Now tell me what that means?

 

[Bigfoot]

I personally think that if an attempt to market fed cattle for their true value took place................The packer would starve the feed lots to death.

 

[kenny thomas]

Sounds like a good idea to me.

Now tell me what that means?

That means 30%have a bid price not just what the Packers want to give. It's probably 10% or less now.

 

[Brute 23]

I still dont understand this deal. I've tried to research it but I can not put 2 and 2 together.

 

[kenny thomas]

This week's fat price is based off of last week's negotiated sales. The cheaper they bought last week's the cheaper this week's will be.

 

[callmefence]

What does this do for the typical cow/calf man.
Selling 500 - 600 pound stocker calves?

 

[SmokinM]

I personally think that if an attempt to market fed cattle for their true value took place................The packer would starve the feed lots to death.

How so out of curiosity? Seems like they are already trying to do that.

 

[SmokinM]

What does this do for the typical cow/calf man.
Selling 500 - 600 pound stocker calves?

All those calves go to a feed yard eventually. A fair price for them hopefully translates to a fair price for us. As long as they are getting choked down we will be too.

 

[Dave]

The vast majority are contracted based on what the cash price is the day of delivery. So if they pretty much have enough cattle they bid low on the cash market. That not only drives down the price they pay for the cattle they bid on, it means they pay less for the contracted cattle. If a bigger percentage is bid cattle they have to get more realistic with their pricing. It also gives the seller more leverage to ask for a higher price.

 

[kenny thomas]

The vast majority are contracted based on what the cash price is the day of delivery. So if they pretty much have enough cattle they bid low on the cash market. That not only drives down the price they pay for the cattle they bid on, it means they pay less for the contracted cattle. If a bigger percentage is bid cattle they have to get more realistic with their pricing. It also gives the seller more leverage to ask for a higher price.

Exactly

 

[Brute 23]

What does this do for the typical cow/calf man.
Selling 500 - 600 pound stocker calves?

Sounds like nothing... still too many hands in the cookie jar. It's about feedlots making more of the profit packers are making.

If most producers were more financially stable we would set the price and let the rest figure it out from there. I wonder how much storage is in the supply chain from a time stand point if the was a freeze on sales from producers? Bet we could get more attention like that?

 

[BC]

What does this do for the typical cow/calf man.
Selling 500 - 600 pound stocker calves?

It keeps the feeder in business so he can buy your stocker calf after he gets big enough to feed.

Right now TX, OK and NM only about 7 to 8 percent of fat cattle are sold on a negotiated bid. Those negotiated bids set the market for the various grids.

 

[HDRider]

What does this do for the typical cow/calf man.
Selling 500 - 600 pound stocker calves?

It keeps the feeder in business so he can buy your stocker calf after he gets big enough to feed.

Right now TX, OK and NM only about 7 to 8 percent of fat cattle are sold on a negotiated bid. Those negotiated bids set the market for the various grids.

The upper Midwest sells over 50% on a negotiated bid

 

[HDRider]

What does this do for the typical cow/calf man.
Selling 500 - 600 pound stocker calves?

Sounds like nothing... still too many hands in the cookie jar. It's about feedlots making more of the profit packers are making.

If most producers were more financially stable we would set the price and let the rest figure it out from there. I wonder how much storage is in the supply chain from a time stand point if the was a freeze on sales from producers? Bet we could get more attention like that?

Describe a scenario where producers set the price. How would that work?

 

[TennesseeTuxedo]

Join the 30/14 movement.

 

[HDRider]

Join the 30/14 movement.

How does a producer do that?

Isn't it only the feed lots that have the opportunity?

 

[TennesseeTuxedo]

Watch today's Feeder Flash.

 

[TennesseeTuxedo]

https://www.youtube.com/watch?v=yO2qm2ZF-rw

 

[HDRider]

Instead of making you watch the video like some bird would, simply go here to create and submit your letter of support for the 30% cash purchase. Some of you probably will not do this because it is asking the government to do something, and you think the government should do nothing.

https://docs.google.com/forms/d/e/1FAIpQLScy2PxQll9OnebecgLmgBlQoGuKkC_d56Emobjpui1GvhCr5g/viewform