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New Mexico | demand factors.
Product demand is a function of product volume moved at a price.
Increased volumes moved at increased prices means demand is higher.
Last week of April moved approx 7,700 loads of comprehensive cutout beef. Say approx 5.6% more than the same period 09.
Comprehensive cutout price of $166.84 cwt., up approx 12% from same period 09.
COUPLE MORE fairly positive factors noticed here:
1. Exports, approx 1,100 loads moved ( 14.2% of total )
compared to 09, same period of approx 635 loads moved, 8.7% of total then.
2. ALSO: Forward product sales out there 22 days and farther...shows close to 1,400 loads or approx 18% of total volume.
2009 same period, only 682 loads out there 22 days or more at 9.4% of volume then.
Current cattle prices to producers only somewhat reflect the future Beef market confidence displayed by buyers of that 22 day out and further beef being bought NOW.
Edited by Markwright 5/8/2010 16:22
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Beef demand is higher even though current price does not fully indicate the huge
