Jiglu: Farmtalking: Discussion: RE: Omaha.com Story from Frances

Originally from: Pat Gardiner

Capitalism, red in tooth and claw. They see a change in the market place and react to secure their best interests.

It is a little unseemly, but the best we can do, until somebody comes up with something better.

What it does need also to make it work is an intolerance of corrupt officials....otherwise insider trading and eventually worse.

A meat trade man said to me last week. "We need another Swine Fever or Foot and Mouth. I've never made so much money." The temptation is there, where crooks go unpunished.

Britain and the US have problems. Life ain't perfect. We need whistle blowers and witnesses, complainers and campaigners. We also need politicians with enough moral principles to protect them.

In Britain we have plenty of whistle blowers, but life is made impossible for them. Most eventually go abroad in disgust.

I don't know about the US, but we can't solve the problems of the whole world. Burkie can look after his bit.

Regards Pat

Author wrote:
Frances has sent you a message:
Pat, is this a knock on from the Canadian BSE fiasco or what ? Gary, what did you say about corruption now ?
Good business ? Insider trading ? old fashioned taking advantage of a situation ? Take your pick.
Frances
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Published
Record profits fueled September cattle purchases at U.S. feedlots
BLOOMBERG NEWS
U.S. feedlot operators increased purchases of young cattle in September for the seventh consecutive month, encouraged by record profits and strong demand.
Feedlots bought 2.474 million young animals for fattening last month, up 13 percent from September 2002, the U.S. Department of Agriculture said. The estimate was based on a survey of feedlots in Nebraska, Kansas, Texas and 14 other cattle-producing states.
"The rate was strong because of packer demand, and packer demand was high because of the strong consumer demand" for beef, said Joe Kropf of Joe Kropf and Sid Love Consulting Services in Overland Park, Kan. "It's been very profitable to sell feed cattle."
Friday's report was issued after markets closed. Cattle for December delivery rose 0.925 cent, or 1 percent, to 90.05 cents a pound on the Chicago Mercantile Exchange. Futures reached 95.25 cents a pound on Tuesday, the highest price for a most-active contract in 17 years of data available to Bloomberg News.
Futures have risen 24 percent since May 20, when the USDA banned imports of live cattle from Canada after a case of mad cow disease was found in Alberta, tightening supplies of slaughter-ready animals.
Wholesale beef prices, an indication of consumer demand, have surged 41 percent in the same period, reaching a record $2.0118 a pound Thursday.
The total U.S. feedlot herd on Oct. 1 decreased 1.9 percent from a year earlier to 10.213 million head, the lowest for the date since 1998, the Agriculture Department said.
In a gauge of demand from meatpackers, feedlot operators sold 2.032 million head of fattened cattle in September, a 10 percent increase from a year earlier, the department said.
Chuck Levitt, a livestock analyst at Alaron Trading Co. in Chicago, said feedlot operators probably made about $200 on each animal sold in September, more than double the $95 they made in August.
"They made more money per animal in September than any other month in history," he said.
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