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New Mexico | the board on current cattle supply markets.
Reason is most won't sell for a board price of a lot less in the future than the cash is today.
ok...when that happens it forces packers to hand to mouth cattle supply.
( because they could not get em bought using a future contract say 60 days out that was say $15 cwt less than current CASH )
also, there tends to be less formula cattle due to the afore
Basically ( MO ) the market does not indicate anything bearish until the futures price is say $1 to $10 Above the Cash price.
( reason is that gets future supply bought .... packers have a better inventory handle then etc )
4 Things:
1. there's less cattle,
2. there's been a pile of weather ( both on cattle and consumer supply lines ),
3. cattle are current
4. the CONSUMER is current ( Globally )
keep in mind 1 million More people daily now become "middle class."
soooo that adds another usa equivalent population annually that eats more beef because they are YOUNG middle class folks.
pork has been going up in price faster than beef
fish is up 6% over the past 60 days
poultry is up 8% over last year.
looks like things is in demand, or tight, or most likely Both All over.
Edited by Markwright 2/27/2014 02:15
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$152 cwt fat cattle today, and
