Why is it that some ranchers will not sell when the market is up, betting that it will go up even more. Then if they do sell, and the price climbs higher, then they think they are going to die since they cheated themselves out of a few pennies.
Some had rather sell when the market drops to the bottom and then they have to sell from lack of cash flow. This way, they were forced to take the lower price and they don't feel as guilty. Lack of cash flow is one of the problems that ranchers have. When so much is tied up in the cattle, the cash flow comes from the sales. When forced into a corner with no cash, then you lose your profit when you have to generate cash flow when prices drop.
When prices drop, it's time to buy.
When prices are up, it's time to sell.
Some had rather sell when the market drops to the bottom and then they have to sell from lack of cash flow. This way, they were forced to take the lower price and they don't feel as guilty. Lack of cash flow is one of the problems that ranchers have. When so much is tied up in the cattle, the cash flow comes from the sales. When forced into a corner with no cash, then you lose your profit when you have to generate cash flow when prices drop.
When prices drop, it's time to buy.
When prices are up, it's time to sell.