Menu
Forums
New posts
Search forums
What's new
New posts
New media
New media comments
New profile posts
Latest activity
Media
New media
New comments
Search media
Members
Current visitors
New profile posts
Search profile posts
Log in
Register
What's new
Search
Search
Search titles and first posts only
Search titles only
By:
New posts
Search forums
Menu
Log in
Register
Forums
Non-Cattle Specific Topics
Coffee Shop
why cant we name our own prices
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Reply to thread
Help Support CattleToday:
Message
<blockquote data-quote="greybeard" data-source="post: 1280034" data-attributes="member: 18945"><p>Daily/weekly retail price of gas and diesel is set by rack price from Oil Price Information Service and they set that price dependent on one of the commodity markets up on the East Coast I believe--New York mercantile Exchange. That commodity market trades fuel just as CME is the exchange that trades cattle. Rack or spot price is derived from what the closing bell each day says it will cost the terminals (racks) to acquire fuel from the producer (refiners). The refiners set their price dependent on what the daily MYMEX spot price of crude is, as well as any refining problems that have cropped up. To that, they add their margin--(their operating cost + profit). </p><p>The rack price is a daily replacement price for what is in the retailer's tanks or what was sold on that day. That's why retailers frequently change their prices--to reflect not what that underground tank full of gasoline cost, but what it will cost them per gallon to replace it. </p><p>Also why the retail price does not immediately reflect a sudden drop in crude prices--the retailers would take a loss if they sold last week's tankful for what refiners and distributors are going to charge for next week's replacement tank.</p></blockquote><p></p>
[QUOTE="greybeard, post: 1280034, member: 18945"] Daily/weekly retail price of gas and diesel is set by rack price from Oil Price Information Service and they set that price dependent on one of the commodity markets up on the East Coast I believe--New York mercantile Exchange. That commodity market trades fuel just as CME is the exchange that trades cattle. Rack or spot price is derived from what the closing bell each day says it will cost the terminals (racks) to acquire fuel from the producer (refiners). The refiners set their price dependent on what the daily MYMEX spot price of crude is, as well as any refining problems that have cropped up. To that, they add their margin--(their operating cost + profit). The rack price is a daily replacement price for what is in the retailer's tanks or what was sold on that day. That's why retailers frequently change their prices--to reflect not what that underground tank full of gasoline cost, but what it will cost them per gallon to replace it. Also why the retail price does not immediately reflect a sudden drop in crude prices--the retailers would take a loss if they sold last week's tankful for what refiners and distributors are going to charge for next week's replacement tank. [/QUOTE]
Insert quotes…
Verification
Post reply
Forums
Non-Cattle Specific Topics
Coffee Shop
why cant we name our own prices
Top