Numbers?

[grassfarmer]

What is happening to the fat cattle trade just now? I see the TEAM sale at Calgary today was around 68c/lb.
In January/February fats were dearer but the feedlots I spoke to told me they weren't bidding on calves because they feared when numbers built up (by June)the packers would run the same racket as last year and fats might be 50 cents/lb. The feeder price plunged and many sold cattle badly.
Roll on March/April and everyone is talking about the dynamics changing - fats were dearer and everybody wanted feeders again as the carryover numbers from last year must have been wrong as cattle were scarce. And now what? as we approach June were the original thoughts of oversupply in January correct? if there is no movement on the border opening this side of summer will the packers continue in their cheating ways and steal another crop of cattle to make them record profits while ranchers /feedlots go under?

[kato]

Fat prices are being affected by the Rcalf challenge. The R calf challenge is affecting the permits allowing boneless beef from 30 month cattle.
We also have a new investigation from Harvard, initiated by the USDA to satisfy Rcalf.

This will take a long time, isn't that right rsomer.

Test all cattle for BSE.

[PureCountry]

Will we ever again see a day when political games do not control our lives? I hope so, but damn it it's gonna take more action than words.

[rusty1]

We are long overdue it putting pressure on auction marts to lower their commissions!

[rsomer]

Media today quoted U.S. Secretary of Agriculture Ann Veneman as saying, "That rule should be completed in the near future, but at this point I cannot give you an exact time."

The Harvard Risk Assessment on BSE in the United States took three years to complete. To be clear, the USDA did not ask Harvard to prepare another risk analysis of the nation's vulnerability to BSE. The USDA "asked [Harvard] to take a look at some of the comments that they got on their proposed rule for allowing beef in from Canada," said George Gray, director of the Harvard Center for Risk Analysis. In 2001, Gray was the main author of a Harvard risk analysis that said mad cow disease was highly unlikely to occur in the United States. But if it did, the federal government had implemented enough safeguards to ensure that mad cow disease did not become widespread, the report concluded. Canada has pressed the USDA to fully reopen the border, noting that the United States discovered its own case of mad cow disease in late December. Source Reuters May 24, 2004.

According to the Boxed Beef Report, packer profits in Canada rose sharply last week to $380-$390 a head

[grassfarmer]

Interesting boxed beef report rsomer, rpkaiser - I think that kind of tells you what is really going on. This vague talk of difficulties with export certificates etc is BS - It's another case of packers applying pressure to sellers to make obscene sums of money. Look at the figures $380 - $390 per carcase - soon they will be taking 50% of the sale price of a fat steer. I still wonder if the numbers of fats are creeping up in the feedlots when producers are selling at these prices.

[cowman]

So just wondering if the price of beef is coming down in the stores? It sure isn't in the restaurants! However chicken has gone up pretty high so maybe it will drag up the price of beef?
People tell me you can buy some pretty fair old hamburger type cows for 10 cents again, so I would assume hamburger should be a bargain right about now?
If Cargill/Tyson are selling all this boneless prime cuts type of beef to the US, does that mean we get to throw the old chuck or brisket or shanks on the bar-b-que this summer? Well I hope you all have good teeth!

[cowman]

Sorry about my earlier assesment of pricing. Permits may be harder to get but this price drop is simply a matter of monopoly control and captive market.
Remember the cattle that were placed last fall for a decent price to the producers that sold. Lots were likely purchased by Cargil and Tyson, and more were contracted by them. Most of those are now sold and these pirates are simply now dropping prices offered to good old farm dog feedlot guys once again. This new system is getting easier to read every day.