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South central ne | And the times cash is 10 back from futures when packers have a glut of contract/formula cattle? Deliver on some suit that didn't get out of his longs quick enough and teach a lesson. I make one turn a year of brawlers, to grass, to finish....by no means am I a HIGH ROLLER in the beef industry, if it wasn't for hedges I wouldn't be filling grass this summer, everyone needs to manage risk in there own way 5 to 500,000 head.
The problem isn't the board the problem is when I'm in my 20s, leveraged to the hilt on my 7 pens and turn down 1.15 and hold for 1.20. Then the 65yr old guy down the road with everything paid for says thanks because he has a formula deal and will get 1.25 on 25 pens and not worry about getting a bid for his cattle.
Edit: by no means do I think delivering on the board is a good deal, but it's an option
Edited by ObarE 3/26/2020 21:00
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It seems to me that the futures market on cattle should go away...
