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Buxton ND | This after yesterday's KR lower in LEV = bearish
Making a new low and a new closing low = bearish
Money flows have been kinda friendly = IMO their gonna get their nuts clipped being on the wrong side of the fence. This fence to really include the pig fence = Bearish.
The meat coolers and the sardines are something I've always gotta check out at the grocery store. This started back in the 80's and my pig days after an old hog buyer told me to pay attention to the packaging of meat's in the stores. He also said pay attention to what gets the prize spot at the end of the aisle and the size of packages big or small.
This started BEFORE the highs were made in cattle the packaging size of beef was getting SMALLER. Say single package steaks, as price rises the weight goes down to try to keep the unit price under $10. As prices rise, beef a short/er is does not get that feature spot on the end of the aisle's. You see less of the big family value packs. Toss in the higher end restaurants, beef prices rises, beef goes really high prices, they finally print new menu's to adjust for the very high prices. ALL THIS majorly hurt your DEMAND. BTW do not expect those menu's to go back to the old prices*****
Like with corn, the cattle guys are working on finding that price which buys that demand BACK. Corn guys are on the pissy side, try putting your self in the shoe's of drilling for crude oil, again PISSY. This is supply and demand, whether corn, crude OR COWS as "commodity in general" I could easly toss in Gold/Silver/Copper here, miners around the world are in the crabby paddy camp also.
What I've since since this past summer is $8 really nice Rib-eye's of and on at Wally World/Sam's club. Price per package under $10 ? ? ? Steaks are getting BIGGER. Again last week, Sam's club prime Rib-eye's in the prime end of the aisle spot. Here's a picture, you don't really see it, tho these babies where HUGE 2.5 to 3 pounds HUGE that's a mans' steak. So in 2 years,,, they don't care if its priced under $10 per unit *****ITS PRICE TO MOVE***** HUGE steaks placed in the PRIME SPOT says to me your demand is hurting, your working on buying that *****DEMAND BACK***** Then I went over to the pork,,,,, way way too much cheap pork sitting in the meat coolers, that's getting cheaper, pork will be getting that featured end of the aisle spot to come.
This is probably the most fundamental post I've every made saying nothing about yields and acres just using Wally World ! ! ! ! !
BTW if your a meat wholesalers,,, have trouble moving beef, your not gonna call "Ghost Busters" your gonna call Wally World/Sam's, Costco/Hi-Vee or what ever other big retailers that you can cut a deal to and move a pile of beef quickly.
Anyone have these charts/graph's
Farm price to retail beef spreads ?
LE to HE long time term spreads ?
Beef to Pork spreads on the retail side ?
Do I have some young beef guys curious up yet ? :o)
 (2016-10-04 13.39.22.jpg)
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 2016-10-04 13.39.22.jpg (274KB - 56 downloads)
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cattle
