Trump Tanking the Cattle Market

24,393 Views | 271 Replies | Last: 5 mo ago by Buck Turgidson
rab79
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HTownAg98 said:

My local HEB has 96% lean ground beef for $8.16/lb. 80% lean is $6.49/lb.

And I bought 90-10 for $5.79 a pound last weekend at a butcher shop in Bellville.
Serious Lee
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good discussion here. I agree that people should spend their money more wisely, but old habits die hard, and some people would just rather bleed out than adapt to survive.
Sq 17
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HTownAg98 said:

The only way to allow for some short-term price relief is by importing more beef. Pausing the tariff import quota from Argentina would help.


Under more normal circumstance imports would have already increased to slow down the price inflation
Over_ed
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HTownAg98 said:

The only way to allow for some short-term price relief is by importing more beef. Pausing the tariff import quota from Argentina would help.

This.

But, again, we are back to Trump picking winners and losers. Via Tariffs.

Another example: He just suspended the auto tariffs (on parts) for 5 years - to help auto manufacturers. Needless to say, this does not help bringing part manufacturing into the US.

This is a terrible way to run the economy, not least because of the unpredictability, which is a real killer for any business/industry. Like a cat chasing a shiny laser pointer.

On reigning in the excesses of the left, a solid A. Because of tariffs and deficit, economy is a gentleman's C, and only because the left would have been worse.



shaynew1
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I don't think I'd have a problem with imports if they'd label them
Sq 17
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Is this a reversal on Tariifffs or is the Argentinian Beef coming in under a different rule change ?
Cibalo
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This is part of the reason I have been making my own hamburger meat from fat trimmings and beef roast when it is on sale.

Also was at HEB. Choice tri-tip was 5.99lb compared to $12.99/lb for prime. Prime brisket was $6.50/lb up about $2/lb from this summer.
HTownAg98
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Sq 17 said:

Is this a reversal on Tariifffs or is the Argentinian Beef coming in under a different rule change ?

No one knows, but I'd guess it's a relaxing of the tariff quota currently in place on Argentine beef. We've had off and on quotas with Argentina since the late 1990s.
Sq 17
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Thanks so better described as relaxing of long standing quotas

Courtesy Flush
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It must be amazingly inexpensive to raise cattle in Argentina and bear the cost of shipping to the US and be less expensive than beef raised here or in Mexico.
roycoy82
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It's amazing on TexAgs how many big government interventalist show up on the price of beef. We've made very little for so long and now we're making money and Trump wants to price fixe. Makes ya wonder who on this chain is a free market capitalist.
TAMUallen
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Courtesy Flush said:

It must be amazingly inexpensive to raise cattle in Argentina and bear the cost of shipping to the US and be less expensive than beef raised here or in Mexico.


Tell me you've never worked with cattle or livestock without telling me you've never worked with cattle or livestock
roycoy82
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Tamu finance '04. Two ranches. Showed cattle growing up. You can object to my opinion so please show me some facts on why govt intervention to drop beef prices is a good idea.
roycoy82
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Sorry Allen: thought u were responding to me. Gonna go back to this lions /bucs game. Let's make some
Money in this cattle environment!
HTownAg98
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I'm not sure you realize what would happen if we got rid of all the government intervention, especially with regard to tariff quotas, regarding the cattle market and turn it into a true free market. But do go on.
You do realize that part of the reason prices are high are due to restrictions on imports from Central America because of the NWS problem, yes?
Colonel Kurtz
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"America first" right Don?
The Ex Officio Director
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I buy meat at Costco, haven't seen a huge increase on my grocery bill. I've got brisket, ribs and Boston butt to smoke the next few weeks. Neighbors are going to be jealous.
Can't decide if I want to be cute & cuddly, or go blow some sh*t up.
Decisions decisions.
Buck Turgidson
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If US ranchers can't make money at these prices, they're doing something wrong.
roycoy82
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We are making money. A lot. Now that being said, it's mostly free land from inheritance. I read a study and there only a few counties where you can truly make money and I'm dubious. Ya gotta be SE of Waco in falls county.
Logos Stick
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Over_ed said:

HTownAg98 said:

The only way to allow for some short-term price relief is by importing more beef. Pausing the tariff import quota from Argentina would help.

This.

But, again, we are back to Trump picking winners and losers. Via Tariffs.

Another example: He just suspended the auto tariffs (on parts) for 5 years - to help auto manufacturers. Needless to say, this does not help bringing part manufacturing into the US.

This is a terrible way to run the economy, not least because of the unpredictability, which is a real killer for any business/industry. Like a cat chasing a shiny laser pointer.

On reigning in the excesses of the left, a solid A. Because of tariffs and deficit, economy is a gentleman's C, and only because the left would have been worse.




Agree. This is schizophrenic.
Old May Banker
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Ranchers =/= beef packers

How's the beef gonna get here, thru IBP / Tyson? Argentine beef will have minimal impact on meat price IMHO. I believe demand will continue to outpace supply with only a couple of companies ultimately controlling pricing.
Mas89
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Today, both feeder cattle and live cattle futures prices closed higher for 2025 contract months. On Friday , futures prices for both were down about 2.5 percent.
The devil will be in the details, but I would assume new imports would be frozen, boxed beef. Just like Australia, Brazil, and other major beef exporters around the world, they already ship their beef all over the world. And so does the United States. Prices are high around the world, not just in the US.

Stupid to think shipping beef to the US is going to greatly help Argentina. They are already selling the beef elsewhere. It's not like they are throwing it away currently.

The problem with getting any food imported from other countries is the lack of reliable quality inspection. What do you think is currently being imported as seafood from Asia? Chemicals used for preservatives? Fish and all other sorts of products are routinely mislabeled. I would rather pay more for US seafood than seafood from what went Wong seafood in Vietnam.
Same with beef. What else is added to that package? Lots of meat looks like beef when ground up. But I don't want to ruin your dinner…. Who remembers Australia getting caught adding Kangaroo meat to beef?
Surely Juan Valdez in Argentina wouldn't do that, right?

Slwdsm
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Oh no, futures down 2% after the price has gone up 100% in recent years...

This reminds me of realtors *****ing about the slump after laughing their way to the bank during the most ridiculous price inflation and market to ever exist.

TAMUallen
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Slwdsm said:

Oh no, futures down 2% after the price has gone up 100% in recent years...

This reminds me of realtors *****ing about the slump after laughing their way to the bank during the most ridiculous price inflation and market to ever exist.




Not remotely the same but k
mustang1234
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HTownAg98 said:

mustang1234 said:

ToddyHill said:

Quote:

If you're wanting to buy a show steer to butcher, make sure they're on full feed for at least 30 days after the show, but 45 is better. Steers will sometimes go on a diet to make a certain weight class, and that means less marbling and fat. That additional feeding time puts that back and then some. You'll have to pay more, but it's worth it.

So true.

When I was in grad school way back in 1980, one of the Houston reserve champion steers ended up at A&M. Absolutely gorgeous confirmation. Darn thing was like a pet as Dr Gary Smith eased it up into the chute. After processing, and a few days in the cooler, Dr Smith brought out the side into the classroom (this was before Rosenthal), and fabricated it into wholesale cuts.

To my surprise, it didn't grade Choice.

They still are not. most winning major show steers will grade out High Select, a few will grade low choice, its been proven that consumers want to buy red meat , not fat, even though marbling makes a steak more flavorful.

Show steers and feedlot cattle are two different animals. Show steers for the last thirty years at least are bred for muscling. It's almost impossible to get a 1,350 pound exotic steer to grade choice, because they'd have to weigh 1,450+ to get there. When I was showing, there was an ag teacher that judged local shows that would dock a steer more than several places for not having enough fat to grade out. Those judges don't exist anymore.

You are correct. My daughter ran the feedmill for a feedyard a few years ago in the panhandle. it did not bother them to run a steer to 1400lbs, Red meat makes the packers money, not fat. The consumer wants red meat and with a shortage, the packers are feeding out to a heavier weight.
Hopefully we will not see any more droughts for a while and supply will catch up with demand.
Slwdsm
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TAMUallen said:

Slwdsm said:

Oh no, futures down 2% after the price has gone up 100% in recent years...

This reminds me of realtors *****ing about the slump after laughing their way to the bank during the most ridiculous price inflation and market to ever exist.




Not remotely the same but k


Thats funny, its exactly the same on my give a eff meter.

I'm looking forward to trying that south American beef while not paying $15+/lbs for mediocre steaks.
Slwdsm
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Just wanted to add, if youre at all concerned about this, check the futures market and zoom out.

Live cattle is up 60% over the last year. A 2% drop barely registers as a correction... this wreaks of another desperate attempt to bring up negative publicity about Trump.
96ags
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Slwdsm said:

TAMUallen said:

Slwdsm said:

Oh no, futures down 2% after the price has gone up 100% in recent years...

This reminds me of realtors *****ing about the slump after laughing their way to the bank during the most ridiculous price inflation and market to ever exist.




Not remotely the same but k


Thats funny, its exactly the same on my give a eff meter.

I'm looking forward to trying that south American beef while not paying $15+/lbs for mediocre steaks.


You may be waiting a while for that combo!
Courtesy Flush
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TAMUallen said:

Courtesy Flush said:

It must be amazingly inexpensive to raise cattle in Argentina and bear the cost of shipping to the US and be less expensive than beef raised here or in Mexico.


Tell me you've never worked with cattle or livestock without telling me you've never worked with cattle or livestock


I actually own a small herd of Gert cows. I've had as many as 30 mommas but currently down to 15 due to drought over last few years. No partner. No manager. It's just me. I sell steers at the local sale barn and the heifers are sold private treaty as replacements. I run them on a Hereford bull and they have great looking motley-faced calves.

I am not involved from the pasture to the plate nor am I involved in the macro-economics of beef supply but my comment remains valid so don't try and call someone out. It's doesn't make you look any more knowledgeable.
Slwdsm
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96ags said:

Slwdsm said:

TAMUallen said:

Slwdsm said:

Oh no, futures down 2% after the price has gone up 100% in recent years...

This reminds me of realtors *****ing about the slump after laughing their way to the bank during the most ridiculous price inflation and market to ever exist.




Not remotely the same but k


Thats funny, its exactly the same on my give a eff meter.

I'm looking forward to trying that south American beef while not paying $15+/lbs for mediocre steaks.


You may be waiting a while for that combo!


I guess its all relative. Ny strip was $15.85/lbs at Costco last week. So not much to fall there, however ribeyes...

At this rate going to have to ask for a bigger year-end raise to offset the beef prices.
HTownAg98
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Courtesy Flush said:

TAMUallen said:

Courtesy Flush said:

It must be amazingly inexpensive to raise cattle in Argentina and bear the cost of shipping to the US and be less expensive than beef raised here or in Mexico.


Tell me you've never worked with cattle or livestock without telling me you've never worked with cattle or livestock


I actually own a small herd of Gert cows. I've had as many as 30 mommas but currently down to 15 due to drought over last few years. No partner. No manager. It's just me. I sell steers at the local sale barn and the heifers are sold private treaty as replacements. I run them on a Hereford bull and they have great looking motley-faced calves.

I am not involved from the pasture to the plate nor am I involved in the macro-economics of beef supply but my comment remains valid so don't try and call someone out. It's doesn't make you look any more knowledgeable.

There aren't any cattle coming in from Mexico at the moment because of the screwworm problem, so that market is out. Argentina has a lot cheaper land and labor costs, and they grass finish most of their beef, which is much cheaper. So they can butcher it, freeze it, and load it onto a ship and still be competitive on pricing.
ag94whoop
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It's not price gouging
The number of cattle ranches in the US is down like 70%.
Too much development and corporate purchasing of land.
Not only are all the farms and ranches being bought by billionaires to sit and hold and not actually be truly productive, but large investment entities are doing it in volume as well.

The sheer number of cattle of down like 60-70% so it's a supply demand thing.
Stop letting so many people into the country, reduce the urban sprawl, make it easier for ranchers to survive and the numbers would balance out. Auction prices for cattle hasn't changed much in like 40 years until the last year or two even though consumer prices skyrocketed. Ranchers are finally making a little money for the first time in many of their lifetimes and they are getting it artificially suppressed down.
Mas89
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Slwdsm said:

96ags said:

Slwdsm said:

TAMUallen said:

Slwdsm said:

Oh no, futures down 2% after the price has gone up 100% in recent years...

This reminds me of realtors *****ing about the slump after laughing their way to the bank during the most ridiculous price inflation and market to ever exist.




Not remotely the same but k


Thats funny, its exactly the same on my give a eff meter.

I'm looking forward to trying that south American beef while not paying $15+/lbs for mediocre steaks.


You may be waiting a while for that combo!


I guess its all relative. Ny strip was $15.85/lbs at Costco last week. So not much to fall there, however ribeyes...

At this rate going to have to ask for a bigger year-end raise to offset the beef prices.

What's wrong with $15 a pound? People are lined up all day at McDonald's and what a burger to pay $12 for a 1/4 pound burger, fries and a drink which both cost less than 20 cents.
and they don't have a clue what's actually in that 1/4 pound " beef" burger.
itsyourboypookie
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ag94whoop said:

It's not price gouging
The number of cattle ranches in the US is down like 70%.
Too much development and corporate purchasing of land.
Not only are all the farms and ranches being bought by billionaires to sit and hold and not actually be truly productive, but large investment entities are doing it in volume as well.

The sheer number of cattle of down like 60-70% so it's a supply demand thing.
Stop letting so many people into the country, reduce the urban sprawl, make it easier for ranchers to survive and the numbers would balance out. Auction prices for cattle hasn't changed much in like 40 years until the last year or two even though consumer prices skyrocketed. Ranchers are finally making a little money for the first time in many of their lifetimes and they are getting it artificially suppressed down.



Stockers are getting crushed unless they can increase their credit lines 2-3x. And unless the market goes up they are still only making $200 a head, risking 2-3 times the capital. Any deathloss or market corrections means they are working for free or losing money. If they aren't naked, they are hedging out $50-$100 a head in profit.

Not every rancher in the supply chain are cow calf guys. Most guys I know want to spread risk across 1000 head, not 500 in a market being driven by speculation rather than fundamentals. The cow herd is down, but beef production is keeping up.

Either inflation finally caught up to the cattle market, or it's in a giant bubble. I'd say after the Trump tweets, prices might be here to stay.
skinny2001
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How will all the new farmers afford enough land to become profitable?

This is not happening. No offense.

Raising cattle to turn a profit is I think like every other industry in the us. You have to scale because our economy is so efficient. Small scale farms like you're proselytizing here would be just a hobby in my opinion

 
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