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Post by the illustrious potentate on Aug 29, 2019 11:56:52 GMT -6
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Post by hook on Aug 29, 2019 12:58:50 GMT -6
I might be simple minded, but im of the opinion that food stuffs shouldn’t be traded as a commodity on paper. Its betting against the farmer every time
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Post by the illustrious potentate on Aug 29, 2019 14:04:01 GMT -6
I might be simple minded, but im of the opinion that food stuffs shouldn’t be traded as a commodity on paper. Its betting against the farmer every time I'm of the opinion that trade should be designed to find the true price. Trading uncoupled from delivery seems to be counter to finding the true price and I think opens up the potential for manipulation. |
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Post by randy on Aug 29, 2019 16:02:21 GMT -6
I think the traders should have to take delivery. That said most any change would have to be better than what we have now. Some deregulation on usda inspections of meat needs to happen. States should be able to inspect meat for sale in the state.
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Post by the illustrious potentate on Aug 30, 2019 6:29:38 GMT -6
I think the traders should have to take delivery. That said most any change would have to be better than what we have now. I've always been of that mind set, and it's my gut reaction as I said the same thing. But I've been mulling this over, and maybe I'm wrong? At least in how the system is set up now. Like Lee pointed out, who is taking delivery? I agree with the list of problems he has outlined and I think we all know that something has to be done. I think first and foremost, we have to deregulate the packing industry to allow real competition. The PRIME act goes a long way toward getting some competition, but we also have to address what has allowed the industry to be bottle necked at the federal inspection level. I kinda figured a go around at the state level of allowing intrastate regulation would decrease their supply and increase their demand/price. At minimum it gives a relief valve to producers in their states. Down side is that it would help producers in the highest production states the least when you look at supply and demand- large amount of beef production with limited populations. Buf I've come to understand, the futures are being suppressed by other factors as well and I dont think taking delivery is going to improve that manipulation. So the answer needs to include a revision to trading as discussed. The grid has taken away much of the true price finding. We need to maintain a fluid trading system and not one that is so vertical that it continues to starve out small producers. I'm still trying to get my head wrapped around the effects of the proposal above. I think the future contracts needs to be tied to the price of wholesale on the downstream side of packing. I think we have to be watchful of anything that would allow suppression prior and support of price following packing until resolution of the monopoly is part of the equation. |
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Post by randy on Aug 30, 2019 7:27:56 GMT -6
I personally think most of this is caused by the same global forces and a big part of the nation wide war on agriculture in general. I think the traders and the packers are being allowed to manipulate the markets to put us out of business. We have seen the government agencies working against the farmers across the board with regulation. Rich getting richer and the working people getting the shaft.
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