Good news: Los Angeles' last standing beef packing plant is
considering closing it's doors.

Shorty Blackwell wrote:

> Good news: Los Angeles' last standing beef packing plant is
> considering closing it's doors.

Doesn't mean anything; Tyson and Swift have plenty of
spare capacity.

Demand for beef is rising, leading to higher prices.
The higher prices, in turn, will lead to an increase in
supply in just a few years.

Jonathan Ball wrote:
>> Good news: Los Angeles' last standing beef packing plant is
>> considering closing it's doors.
>
> Doesn't mean anything; Tyson and Swift have plenty of spare capacity.
>
> Demand for beef is rising, leading to higher prices. The higher prices,
> in turn, will lead to an increase in supply in just a few years.

This is true. Beef production in Texas is going through the roof. One of
the biggest reasons is the popularity of low-carb dieting. Low-carb
dieting is also to blame for the surplus of products like
frozen-concentrated orange juice. Take a look at FCOJ futures.
http://futures.tradingcharts.com/chart/OJ/M

Here's the live cattle chart:
http://futures.tradingcharts.com/chart/LC/M

"Jonathan Ball" > wrote in message
ink.net...
> Shorty Blackwell wrote:
>
> > Good news: Los Angeles' last standing beef packing plant is
> > considering closing it's doors.
>
> Doesn't mean anything; Tyson and Swift have plenty of
> spare capacity.
>
> Demand for beef is rising, leading to higher prices.
> The higher prices, in turn, will lead to an increase in
> supply in just a few years.

Wrong. Higher beef prices is due to decreased supply, not increased demand.
The U.S. currently doesn't import Canadian beef because BSD was discovered
in a Canadian herd.

usual suspect wrote:

> Jonathan Ball wrote:
>
>>> Good news: Los Angeles' last standing beef packing plant is
>>> considering closing it's doors.
>>
>>
>> Doesn't mean anything; Tyson and Swift have plenty of spare capacity.
>>
>> Demand for beef is rising, leading to higher prices. The higher
>> prices, in turn, will lead to an increase in supply in just a few years.
>
>
> This is true. Beef production in Texas is going through the roof. One of
> the biggest reasons is the popularity of low-carb dieting.

That's exactly right. I thought I saw a story about
that in the L.A. Times yesterday or the day before, but
it must have been elsewhere; I *know* I saw the story,
just don't remember where.

> Low-carb
> dieting is also to blame for the surplus of products like
> frozen-concentrated orange juice. Take a look at FCOJ futures.
> http://futures.tradingcharts.com/chart/OJ/M
>
> Here's the live cattle chart:
> http://futures.tradingcharts.com/chart/LC/M
>

Jonathan Ball wrote:
>>> Demand for beef is rising, leading to higher prices. The higher
>>> prices, in turn, will lead to an increase in supply in just a few years.
>>
>> This is true. Beef production in Texas is going through the roof. One
>> of the biggest reasons is the popularity of low-carb dieting.
>
> That's exactly right. I thought I saw a story about that in the L.A.
> Times yesterday or the day before, but it must have been elsewhere; I
> *know* I saw the story, just don't remember where.

http://www.pasadenastarnews.com/Stor...771056,00.html

Jonathan Ball wrote:

> usual suspect wrote:
>
>> Jonathan Ball wrote:
>>
>>>> Good news: Los Angeles' last standing beef packing plant is
>>>> considering closing it's doors.
>>>
>>>
>>>
>>> Doesn't mean anything; Tyson and Swift have plenty of spare capacity.
>>>
>>> Demand for beef is rising, leading to higher prices. The higher
>>> prices, in turn, will lead to an increase in supply in just a few years.
>>
>>
>>
>> This is true. Beef production in Texas is going through the roof. One
>> of the biggest reasons is the popularity of low-carb dieting.
>
>
> That's exactly right. I thought I saw a story about that in the L.A.
> Times yesterday or the day before, but it must have been elsewhere; I
> *know* I saw the story, just don't remember where.

This is the story:
http://biz.yahoo.com/ap/031112/high_...profits_1.html

>
>> Low-carb dieting is also to blame for the surplus of products like
>> frozen-concentrated orange juice. Take a look at FCOJ futures.
>> http://futures.tradingcharts.com/chart/OJ/M
>>
>> Here's the live cattle chart:
>> http://futures.tradingcharts.com/chart/LC/M
>>
>

usual suspect wrote:

> Jonathan Ball wrote:
>
>>>> Demand for beef is rising, leading to higher prices. The higher
>>>> prices, in turn, will lead to an increase in supply in just a few
>>>> years.
>>>
>>>
>>> This is true. Beef production in Texas is going through the roof. One
>>> of the biggest reasons is the popularity of low-carb dieting.
>>
>>
>> That's exactly right. I thought I saw a story about that in the L.A.
>> Times yesterday or the day before, but it must have been elsewhere; I
>> *know* I saw the story, just don't remember where.
>
>
> http://www.pasadenastarnews.com/Stor...771056,00.html

That would be it exactly: I subscribe to the Star-News.

C. James Strutz wrote:

> "Jonathan Ball" > wrote in message
> ink.net...
>
>>Shorty Blackwell wrote:
>>
>>
>>>Good news: Los Angeles' last standing beef packing plant is
>>>considering closing it's doors.
>>
>>Doesn't mean anything; Tyson and Swift have plenty of
>>spare capacity.
>>
>>Demand for beef is rising, leading to higher prices.
>>The higher prices, in turn, will lead to an increase in
>>supply in just a few years.
>
>
> Wrong.

No, right.

> Higher beef prices is due to decreased supply, not increased demand.

It's both, dumbo:

Diets can't take all the credit for the increase. A
mad-cow disease scare closed off the Canadian
supply, so steak distributors worldwide turned to
the U.S. market, where there were no reports of the
sickness. The two countries are the major suppliers
of grain-fed beef, which consumers prefer to
grass-fed beef. Droughts around the United States
also have thinned cattle herds, so supply is down.

"But that gets you 2 or 3 or 4 cents on the pound,
that doesn't get you 20 or 30 or 40,' said Gregg
Doud, chief economist for the National Cattlemen's
Beef Association . ***"That comes from predominantly
domestic demand. That's steak orders from
restaurants."*** [emphasis added]

http://www.pasadenastarnews.com/Stor...771056,00.html

There is a demand element at work: People are eating
more beef, despite the higher prices.

C. James Strutz wrote:
> Wrong. Higher beef prices is due to decreased supply, not increased demand.

I can attest that beef production is increasing to keep up with *demand*.

> The U.S. currently doesn't import Canadian beef because BSD was discovered
> in a Canadian herd.

The affected cow was detected in May. The ban on Canadian beef has only
marginally affected futures. Prices rose briefly, then fell during the
summer (when, ironically, there are usually MORE barbecues and
cookouts). Futures have rallied heaviest in the last four months:
http://futures.tradingcharts.com/chart/LC/M

Jonathan Ball > wrote in message link.net>...

>
> I thought I saw a story about
> that in the L.A. Times yesterday or the day before

Sunday's Times.

C. James Strutz wrote:

> "Jonathan Ball" > wrote in message
> ink.net...
>
>>Shorty Blackwell wrote:
>>
>>
>>>Good news: Los Angeles' last standing beef packing plant is
>>>considering closing it's doors.
>>
>>Doesn't mean anything; Tyson and Swift have plenty of
>>spare capacity.
>>
>>Demand for beef is rising, leading to higher prices.
>>The higher prices, in turn, will lead to an increase in
>>supply in just a few years.
>
>
> Wrong. Higher beef prices is due to decreased supply, not increased demand.
> The U.S. currently doesn't import Canadian beef because BSD was discovered
> in a Canadian herd.

Wrong. It was a single cow.

There is no reason to keep that trade ban on beef. Just like Canadian
lumber.

-- Blue

Shorty Blackwell wrote:
> Jonathan Ball > wrote in message link.net>...
>
>
>> I thought I saw a story about
>>that in the L.A. Times yesterday or the day before
>
>
> Sunday's Times.

Not about the plant closing, ****wad. About the demand
for beef going up.

"BlueHeron" > wrote in message
. ..
>
>
> C. James Strutz wrote:
>
> > "Jonathan Ball" > wrote in message
> > ink.net...
> >
> >>Shorty Blackwell wrote:
> >>
> >>
> >>>Good news: Los Angeles' last standing beef packing plant is
> >>>considering closing it's doors.
> >>
> >>Doesn't mean anything; Tyson and Swift have plenty of
> >>spare capacity.
> >>
> >>Demand for beef is rising, leading to higher prices.
> >>The higher prices, in turn, will lead to an increase in
> >>supply in just a few years.
> >
> >
> > Wrong. Higher beef prices is due to decreased supply, not increased
demand.
> > The U.S. currently doesn't import Canadian beef because BSD was
discovered
> > in a Canadian herd.
>
> Wrong. It was a single cow.

A single cow, imported with a herd from the US.

> There is no reason to keep that trade ban on beef. Just like Canadian
> lumber.

Surprisingly, the beef prices didn't change in Canada, though the packing
plants made a "killing" due to the liquidation prices they were buying the
beef at.