How will tough times affect beef

[chambero]

So have the ethanol plants basically shut down?  Is that where the surplus of corn is coming from (combined with the fact everyone converted every piece of land they could to corn production)?

 

[red]

there was one in Lima that went bankrupt. Rumours is that it's been bought. Another one in the next county has better backers so it's still going.

 

[knabe]

the problem with subsidies is that you can never get rid of them. 

 

[aj]

That must be why grass is 600$ an acre here.

 

[dhs]

I pretty sure it is going to take the market a little longer than 2010 to turn around. The number one reason cattle prices are so low now is because the U.S. beef supply is not exporting enough beef, this is largely do to the fact that the top 3 countries we have exported beef to have greatly cut back, this is very apparent with Russia, because when crude oil price dropped the value of the U.S. dollar rose. Subsequently, Russia, an oil rich nation could not afford to import beef, cause it was cost them to much money when they traded, the world market is the market to watch, cause when we export beef the U.S. get premiums on the product. I have heard it will take at least 3 years before the cattle market will be able to rebound.