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Cattle Boards
Cattle Sales
30% negotiated cash purchase price
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<blockquote data-quote="Dave" data-source="post: 1626606" data-attributes="member: 498"><p>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.</p></blockquote><p></p>
[QUOTE="Dave, post: 1626606, member: 498"] 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. [/QUOTE]
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30% negotiated cash purchase price
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