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SC Iowa | the two previous responses are exactly why risk management will be so very important for the livestock sector
those extra animals, combined with extra weight on each of them, will eventually put an end to the super-bull cattle market far sooner than the traditional numbers might indicate
just like the corn farmer is finding out that spending 15-20 cents to protect a dollar or more downside is something that needed to have been done......getting some put option floors under substantial margins....or even mediocre ones, is something that has to be done to insure survival in a period of time where extraordinary profits have the potential to turn in to uber-sized losses
you tell me.....has there EVER been a "soft landing" in the cattle biz??
why should this one be any different, especially now that we have the lower priced corn to feed to higher weights.....
Ray J | |
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