Comments from a market report

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tom4018

Dumb Old Farmer
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Jan 2, 2004
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I was reading a market report from the largest cattle sale in the state and thought the market reporter's comment were interesting, never considered the by products of the cattl effecting the prices.

Here is his comments:
" With cattle
sales for the year all but over, perhaps it is time to reflect on what
has been a somewhat arduous last few months for most cattle producers.
Locally, all classes of cattle have been selling well below year ago
levels for some time. And there are, no doubt, a myriad of reasons for
this all encompassing price destruction, only one of which can be
briefly touched upon here: chiefly the economy. The slaughter cow
trade is not as glamorous as the feeder and fed cattle trade, but,
surely, is a good indicator of the health of not only the cattle
business but general economic activity. To support this assertion,
if we pull up the AMS Weekly By-Product Drop Value (Cow) report
NW_LS444, we see cow hides nearly a fourth of their year ago prices
and tallow nearly a third in value from last year’s levels. Clearly,
one major reason for little demand for hides is a car industry that
is quickly contracting, as well as, in this economic environment,
other industries that use leather being hesitant to produce much beyond
what they know they can sell. The price destruction of cow by products
is but one reason why, locally, slaughter cows have been trading six to
ten dollars below last year’s prices. "
 

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