Posted 11/16/2012 03:52 (#2699894 - in reply to #2699869) Subject: Re: JBS and grass fed beef from Brazil
I think this fits in with Russ's post down below.While some think the price of high corn makes the farmer feeder more competitive with big feedlots,I question if they are thinking this through far enough.Its a global market and high priced corn may just export the livestock bussiness to other countries.I was told when ethonal was in it infancy that ethonal would move the cattle feeding to the midwest,and was overall good for the livestock industry.My thoughts then were that it was a cow killer,and long term it would make the U.S uncompetitive in the Global market place.My thoughts haven't changed.Went to a feeder auction this week with thoughts of buying yearling steers.860# brought just a hair under 1300$ Needless to say I didn't own them.Talked to the guy who does after and asked him if he hedged those cattle someway,off the board or contract with a packer?He got a blank look on his face and then said "hell those cattle aren't hedgable". I guess there is still a lot of optimism among the farmer feeder!I must be getting old because there are a lot of things I just can't see working out.On the positve side I did manage to piece a pen of 7 weight heifers off grass,at prices I think will work.Maybe I'll just walk and let those kids do the running.LOL
P.S. They aren't increasing the beef herd and slaughter capacity because of a one year drought in the U.S. Scratch your head and ask yourself why they are growing the livestock industry while we are shrinking ours?