Down market on the news
What are the implications
https://www.google.com/amp/mobile.reute ... SKBN19B1NI
What are the implications
https://www.google.com/amp/mobile.reute ... SKBN19B1NI
JBS three rivers
- Thread starter Cross-7
- Start date
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Cross-7":jyvsncpl said:
Game changer.
Cross-7
Well-known member
TennesseeTuxedo":3j1dwzuz said:
Honestly I don't have the knowledge to see what the implications might be.
Will it create a more competitive market ?
Or have we just lost a big cattle feeder that can operate on smaller margins and large volumes as to where a smaller feeder needs bigger margins which comes as the cost of the producer.
Cross-7":2d0qp7x1 said:
From what I understood they are selling all their feedyards to make up for the fines they are paying due to them paying off elected officials in Brazil and shipping contaminated meat.
I heard that this was actually a positive thing for our cattle market because they were expecting them to sell some assets or possibly close a plant. If they had shut down a slaughter plant it could have hurt the market much worse.
I would guess a large company will purchase Five Rivers and not much will change. Smithfield is interested in buying it back and if they do I would say it will be business as usual.
A month or two ago a couple buyers I know that send cattle to JBS told me that there were rumors going around within the company that the government might suspend several of their US operations while investigating all the corruption in the company, and that would have absolutely destroyed the cattle market for a while.
As it ended up, as long as nothing major changes at Five Rivers, everyone I've talked to is hopeful we will end this slide from the last couple of weeks.
As it ended up, as long as nothing major changes at Five Rivers, everyone I've talked to is hopeful we will end this slide from the last couple of weeks.
