|
Ridgway, IL | As far as your comment on the regional differences in price... The couple things that I believe to be in play... Mud, there has been some cash trade in Iowa and Nebraska that seems like really soft compared to the rest on a live basis... But when you covert the rail prices to live then they're more aligned. I can only assume that's because buyers are discounting live prices to account for the change in yield based on the extra tag the cattle are carrying... I think it was last week that some live cattle traded in Iowa at like a 4$ discount to Texas, but when you looked at dressed trade in Iowa, the discount to say Texas wasn't nearly as significant.
I believe it to be an ongoing situation that cattle feeding is shrinking in Texas, and increasing in Nebraska, Iowa, Illinois, mn, Indiana.... Cheaper feed stuffs are bringing the cattle that way, but kill capacity hasn't moved, so it seems reasonable to me that ,in general, basis is going to be softer in Iowa than Texas more often than not | |
|
Cattle
