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western iowa | I believe feeder is correct. From what I have heard at meetings, the cash cattle trade is almost nonexistent. Quite a few are still cash traded in iowa. But to base everything on the Iowa trade isn't good. From what I understand a lot of this has to do with the way USDA handles sales reporting. They use the term "buckets" to describe the sales categories. If you negotiate a cash price but the contract has any different wrinkle. Like the packer pays for them picked up, or its a iowa cash price plus $1 deal, then that goes into the "formula" bucket and doesn't get reported as a cash sale. The result is most of the cattle go into the formula bucket and very few qualify to be reported as a negotiated cash sale. The resulting huge problem is that most of these formulas are based on a reported cash price with no volume.
The guy who writes the cattle report made a pretty good case for modifying the fat cattle contacts in the board to be based on YG3 choice dressed weight bids. The other thing that needs fixed is the USDA needs to get their crap together on reporting these sales.
Sorry for the rant.
Edit to ad - I do know there is a group of guys representing the major cattle feeding states. They are negotiating with both the USDA and the packers trying to make changes to this reporting system that's broken. I think the packers have been less than cooperative because im pretty sure all this non reporting just helps them stack the deck against us even more.
Edited by gostate 11/29/2015 20:43
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Is everyone missing the big picture here?
