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NCBA, R-CALF, COOL, USDA (No Politics!)
Third Black Swan event
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<blockquote data-quote="HDRider" data-source="post: 1685722" data-attributes="member: 17025"><p>It's Worse Than Even We Predicted R-CALF USA Radio Segment May 4, 2021</p><p></p><p>In our last segment we discussed how the fed cattle market has had three Black Swan events in less than two years – three times that wholesale beef prices rallied hard and three times that fed cattle prices collapsed.</p><p></p><p>We're witnessing the third Black Swan event right now. Wholesale beef prices have been climbing since mid-April and yet fed cattle prices are inexplicably falling.</p><p></p><p>We've warned for years that the multinational beef packers, who long ago perfected their vertical integration models in the poultry and hog industries, are now working to do the same thing to the U.S. cattle industry. That is, they're capturing control of the live cattle supply chain away from producers and away from competitive market forces.</p><p></p><p>The model they perfected in the hog industry has at its core a strategy of shrinking the cash market to a level where it is certain to no longer function to establish competitive prices. This was accomplished by shifting large volumes of hogs out of the cash market and placing them under the packers' control through formula contracts and other alternative marketing arrangements, collectively known as captive supply arrangements.</p><p></p><p>They're doing it now to the cattle industry.</p><p></p><p>Read the rest <a href="https://www.r-calfusa.com/wp-content/uploads/2021/05/210504-Its-Worse-Than-Even-We-Predicted.pdf" target="_blank">here</a></p></blockquote><p></p>
[QUOTE="HDRider, post: 1685722, member: 17025"] It’s Worse Than Even We Predicted R-CALF USA Radio Segment May 4, 2021 In our last segment we discussed how the fed cattle market has had three Black Swan events in less than two years – three times that wholesale beef prices rallied hard and three times that fed cattle prices collapsed. We’re witnessing the third Black Swan event right now. Wholesale beef prices have been climbing since mid-April and yet fed cattle prices are inexplicably falling. We’ve warned for years that the multinational beef packers, who long ago perfected their vertical integration models in the poultry and hog industries, are now working to do the same thing to the U.S. cattle industry. That is, they’re capturing control of the live cattle supply chain away from producers and away from competitive market forces. The model they perfected in the hog industry has at its core a strategy of shrinking the cash market to a level where it is certain to no longer function to establish competitive prices. This was accomplished by shifting large volumes of hogs out of the cash market and placing them under the packers’ control through formula contracts and other alternative marketing arrangements, collectively known as captive supply arrangements. They’re doing it now to the cattle industry. Read the rest [URL='https://www.r-calfusa.com/wp-content/uploads/2021/05/210504-Its-Worse-Than-Even-We-Predicted.pdf']here[/URL] [/QUOTE]
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Third Black Swan event
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