|
New Mexico | LOT of non reported price / formula deals now.
seems like there's enough packer owned and captive supply ( 75% of total fed traditionally ), the packers might just take the independants out.
( packer themselves own / feed bout 1/2+ of the tradit fat deal fed / harvested )
Reason:
With those out, that decreases competition for both feeder cattle and feed, thus the "preferred deal" homes have a better deal.
Also the big packers own / contract most of the hogs and chickies....cheaper feed works for that too.
Less total supply down the road and cheaper costs due to that and "exclusive" kinda meat prices / spreads.
I think market behavior ( meat spreads ) last year in june / july was just a test towards IF the afore scenario would work for packers, and it DID.
june july 2013....looks like the same modus operandi, now a standard.
WOW meat spreads are now WOWIER if one is in that "exclusive" non reported pricing club.
We just had another week of choice comp beef above $200 cwt every day.
And tradit fat cash market is $120 cwt ( another $2 cwt lower than the week before ).
seems like the American business way is to Not state the Truth that it simply costs more to operate than before.
The consumer is pretty understanding IF one just says it costs more thus the price is higher for the consumer.
sooo the squeeze the middle consolidated markets American business model LIES to both ends.
squeeze the producer out of some dough on the raw product AND charge the consumer more also. LOL
Edited by Markwright 6/16/2013 22:27
| |
|
Beef Cow harvest way Up, hay used Down
