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<blockquote data-quote="HDRider" data-source="post: 1630270" data-attributes="member: 17025"><p>I been following it as while. It took me awhile to understand it.</p><p></p><p>By bidding cash prices it sets the price for other transactions within the same time frame. </p><p></p><p>It is a more real time price. That is a double edge sword. I have not heard anyone say this, but I could see cash price bids being lower than contract prices if there was a cattle glut. That said, contract prices would kick in first, and then any remaining demand, but no less than the legal minimum (30 or 50%) would be cash bids. </p><p></p><p>Now so many prices are set by future contracts and may or may not reflect the potential sales value at the time of the sale.</p><p></p><p>Regard wanting less regulations. Nothing is black and white. Regulations are what built these mega processors. Instead of saying "we want no regulations" (and I know this will grind your gizzard), but we want regulations in place that give protection to a fair and equitable market. The overwhelming power wielded by the packers now puts everyone else at a big disadvantage. </p><p></p><p>If we had no regulations almost every industry would eventually be dominated by one giant player, a monopoly. One car company, one computer company, one beef company, one drink manufacturer, and so on. In no small part that is what we are seeing now. More and more consolation is happening every day</p><p></p><p></p><p><img src="https://i.insider.com/57ebc2d7077dcc0f208b7830?width=1300&format=jpeg&auto=webp" alt="" class="fr-fic fr-dii fr-draggable " style="" /></p></blockquote><p></p>
[QUOTE="HDRider, post: 1630270, member: 17025"] I been following it as while. It took me awhile to understand it. By bidding cash prices it sets the price for other transactions within the same time frame. It is a more real time price. That is a double edge sword. I have not heard anyone say this, but I could see cash price bids being lower than contract prices if there was a cattle glut. That said, contract prices would kick in first, and then any remaining demand, but no less than the legal minimum (30 or 50%) would be cash bids. Now so many prices are set by future contracts and may or may not reflect the potential sales value at the time of the sale. Regard wanting less regulations. Nothing is black and white. Regulations are what built these mega processors. Instead of saying "we want no regulations" (and I know this will grind your gizzard), but we want regulations in place that give protection to a fair and equitable market. The overwhelming power wielded by the packers now puts everyone else at a big disadvantage. If we had no regulations almost every industry would eventually be dominated by one giant player, a monopoly. One car company, one computer company, one beef company, one drink manufacturer, and so on. In no small part that is what we are seeing now. More and more consolation is happening every day [img]https://i.insider.com/57ebc2d7077dcc0f208b7830?width=1300&format=jpeg&auto=webp[/img] [/QUOTE]
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