Fed Cattle Commentary – Walt Hackney, Hackney Cattle Company

Lyle Strom, a federal judge and the 11th District Court, sealed the fate of any livestock producer who may have had the idea to sue a corporate packer for price manipulation. His decision presented an open highway to any packer to do most anything in terms of market manipulation to the livestock production sector and have full support from the federal judiciary system. The P & S, acting in full cooperation with the corporate packers, will have the needed backstop now to support their lack of service to the producer sector. Cattlemen, without the pseudo support of the federal judiciary system, will need to engrave their personal mission statement, draw a line of defiance in the sand and defend themselves without any help from their own government.

Even after last Friday’s Cattle on Feed report was digested, and deemed to be somewhat bearish, the beef cutouts only lost .28 cents on Monday’s close, and packers could only conjure up 112,000 head for Monday’s kill.

Very little feedlot activity is expected before Thursday afternoon and Friday.

FYI: Walt Hackney’s practical insight into the livestock markets, also dictates that he spend much time in the production areas, buying/selling cattle, and periodically he cannot do his daily commentaries in a timely manner.

Feeder Cattle Commentary
03/28 13:20

Hackney Cattle Company / 402.680.4739

Hackney’s comments from Tuesday, March 28, 2006.

The views expressed here are those of Walt Hackney and are not necessarily those of DTN, its management or employees.

FEEDER CATTLE

With manipulation tolerated by the CFTC by allowing the investment fund groups to dilly-dally at their leisure with futures contracts, and with the 11th District federal court, in support of Judge Lynn Strom, taking away any ability of the public livestock sector’s attempts to legally protect themselves from corporate packer’s price manipulation, the entire production livestock industry is basically left to fight-off the ever-tightening circles of corporate integration and market manipulation, by whatever means are left to the independent producer sector. The solution has evolved far past the idea of protesting, etc. and now is in the hands of the elected political members of Congress, to either change the force of power or promote its evolution! TALK TO YOUR ELECTED OFFICIALS, STATE AND FEDERAL!

So far, this week is quiet in the feedlots, as packers collect enough show-lists to do battle with later in the week, and sellers are waiting for some good news to fortify their positions.

Packers are laying in the weeds, waiting for the first cripple to come along, intending to pounce on the weak link with a lower bid.

FYI: Walt Hackney’s practical insight into the livestock markets, also dictates that he spend much time in the production areas, buying/selling cattle, and periodically he cannot do his daily commentaries in a timely