USDA Investigation - Market Manipulation

[Katpau]

Got this email from the Oregon Cattlemen's Assoc.

"OCA Supports Market Manipulation Investigation

Salem, Oregon – August 29, 2019. The Oregon Cattlemen's Association is disappointed to learn about the concerns of recent market manipulation that may have occurred as a result of the fire at a beef slaughter plant in Holcomb, Kansas. U.S. Department of Ag Secretary Sonny Perdue yesterday launched an investigation via the Packer's Stockyards Division into the reasons for such a dramatic price manipulation, which occurred the previous week. Slaughter INCREASED 9,000 head from the previous week, yet fed cattle prices dropped 5% in one week and Choice boxes spiked 9%, also prices for feeder calves plummeted. The packers currently are realizing profits estimated between $250-$400 per head, which has incentivized packing plants to add additional slaughter work shifts during this market disruption in Holcomb, Kansas.

The Oregon Cattlemen's Association's mission is to advance the economic, political and social interest of the Oregon Cattle industry. In 2019 cow/calf producers are looking at estimated losses of $100 per head while packers continue to make record profits. OCA is supportive of the investigation and looking forward to the results that may expose the manipulating or controlling of prices, creation of a monopoly in the acquisition of buying, selling, or dealing in, any article, or of restraining commerce."

 

[TennesseeTuxedo]

Got this email from the Oregon Cattlemen's Assoc.

"OCA Supports Market Manipulation Investigation

Salem, Oregon – August 29, 2019. The Oregon Cattlemen's Association is disappointed to learn about the concerns of recent market manipulation that may have occurred as a result of the fire at a beef slaughter plant in Holcomb, Kansas. U.S. Department of Ag Secretary Sonny Perdue yesterday launched an investigation via the Packer's Stockyards Division into the reasons for such a dramatic price manipulation, which occurred the previous week. Slaughter INCREASED 9,000 head from the previous week, yet fed cattle prices dropped 5% in one week and Choice boxes spiked 9%, also prices for feeder calves plummeted. The packers currently are realizing profits estimated between $250-$400 per head, which has incentivized packing plants to add additional slaughter work shifts during this market disruption in Holcomb, Kansas.

The Oregon Cattlemen's Association's mission is to advance the economic, political and social interest of the Oregon Cattle industry. In 2019 cow/calf producers are looking at estimated losses of $100 per head while packers continue to make record profits. OCA is supportive of the investigation and looking forward to the results that may expose the manipulating or controlling of prices, creation of a monopoly in the acquisition of buying, selling, or dealing in, any article, or of restraining commerce."

Think it will go anywhere?

 

[rollinhills]

Corbitt Wall seems to think it will.

 

[farmerjan]

If you listen to the feeder flash that Corbitt Wall does daily, you will hear today about his belief's that finally it will start to look like someone is looking out for the little guy. The actual profits they are making are running over 500 a head with the price drop in the fats and the huge increase in boxed beef because of a "shortage" that was totally bogus. Plus, not only are the cattle producers pretty pissed, but the buyers of boxed beef are really up in arms about the huge spike in prices. I think there will be some reckoning to be done this time. I think they pushed their limits a little bit too much and farmers are getting tired of bending over and "taking it" as well as the wholesale buyers who have to pass these costs on to their buyers.

 

[Nesikep]

I'd love to see some convictions come from that, but I think it'll go as far as all the political witch hunts, then even if found guilty there's no REAL consequence

I believe Mark Twain said something along the lines of "I refuse to see a corporation as a person until the hang one"... If any single person does a crime, they get sent to jail... if a corporation does, it gets a little fine..

 

[callmefence]

Got this email from the Oregon Cattlemen's Assoc.

"OCA Supports Market Manipulation Investigation

Salem, Oregon – August 29, 2019. The Oregon Cattlemen's Association is disappointed to learn about the concerns of recent market manipulation that may have occurred as a result of the fire at a beef slaughter plant in Holcomb, Kansas. U.S. Department of Ag Secretary Sonny Perdue yesterday launched an investigation via the Packer's Stockyards Division into the reasons for such a dramatic price manipulation, which occurred the previous week. Slaughter INCREASED 9,000 head from the previous week, yet fed cattle prices dropped 5% in one week and Choice boxes spiked 9%, also prices for feeder calves plummeted. The packers currently are realizing profits estimated between $250-$400 per head, which has incentivized packing plants to add additional slaughter work shifts during this market disruption in Holcomb, Kansas.

The Oregon Cattlemen's Association's mission is to advance the economic, political and social interest of the Oregon Cattle industry. In 2019 cow/calf producers are looking at estimated losses of $100 per head while packers continue to make record profits. OCA is supportive of the investigation and looking forward to the results that may expose the manipulating or controlling of prices, creation of a monopoly in the acquisition of buying, selling, or dealing in, any article, or of restraining commerce."

Think it will go anywhere?

There might be a little money kicked down the hill until the dust settles. People forget quickly when their happy.