| Show I 1 tl a vcr V UZ auz tion JA r LOS ANGELES january 10 1928 things are happening in ill the cattle macket very much tile the ay a observers veis anticipated during the fall on the coast markets from 1200 to 1300 per axt is being paid for cattle which can only be classed as med harn quality and no doubt considerably abl y stron stronger gei prices would be paid for well finished offerings at the end of the grass shipping season last hast year and before the move tan went of fed cattle commenced those fri in an close touch nith ith the situation cov coi pointed out to those holdi holding ng cattle that the market anas as in a sti strong ong position and that they would not secure the best prices by contracting ahead or selling in ill tile the country it was brought out at that time that the situation was developing into a sellers market and buyers would go where the cattle were under these conditions the best results would be obtained at the open markets where sales gales would be made under competitive bidding with supply and demand governing prices practically the same situation confronts the cattle owner in going into the spring aprin sprin g season as that which prevailed last st fall that is the undertone of the market is strong and authorities generally agre that at least steady with perhaps stronger prices may be anticipated taking into consideration of course the seasonal fluctuations which usually come with the beginning of the movement of grass gr ass cattle qt at is difficult to estimate what the luxury of the country buying and selling has cost the industry as a whole in the past few fen months this cost has not only fallen upon the producer but in many instances upon the packer as early in the season when packers were moving high priced country purchases to their plants and turning curnin the beef into retail channels the withdrawal of their buying from the central maikels caused temporary breaks in prices and advantage oi of these bleaka was taken by buyers who had rot not secured their requirements in 11 the count country rv the consequences were that these lower cost purchases tl thrown iron into the retail meat channels anti and the high priced direct purchases could not compete with them making it for the packer to sell his hi s b beef beef eef on the basis of the values set it at the central market as is always tile case on the other hand later in tile the season packers were bring bringing i ng in in supplies which they had cont contracted ahead at what a appeared p feared to be high prices early but which tinned out to be price levels far below those established at the ouen macket on these supplies supply es of course the producer pio plo ducer lost as had li ad he not contracted his cattle and brought b r ought them to the ma market arket when they were ready lie would have had 11 a d the tl ie benefit of 0 the sustained upward swing swing in in prices which has been experienced in the past few years years it can be seen from these two situations that it was possible for both the packer and producer to lose in country buying whether or not there 1 is S a loss so far as prices re realized are concerned the expense of country buying is always there anti and must be absorbed somewhere some where in the trade and it is very verv li likely kely that this falls upon the brodu producer as it is an admitted fact that livestock purchases may be made at central points at an expense empens e of only about 20 per cent of the expense incident to country buying the situation of countis selling and particularly of condrac contracting ting cattle ahead on an upward market is a most serious one and in some cases during the past few months has sounded the death knell of the profits which cattle e producers should have realized during this season which has been one of profit making in most quarters a situation so necessary n to recompense the industry for the serious losses sustained during the post war liquidation period |
