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OK that's a full day -- Cattle prices as little bump plunged over 2% to a nine month low opt for a mad cow disease was -- found in alone cal in California last Tuesday but.
Question is will this -- keep the bulls away from the -- for very long would joining us now from the -- of the CME.
It Chicago agriculture broadcast stuff.
Max Armstrong Max thank you up so much for joining us obviously when this scam broke immediately I'm sure those in the cattle industry.
Must've been of crossing their fingers but you know what -- reaction certainly with regard to beef exports has been pretty good it seems like the market is settled down.
And really has I -- we're climbing a way back up there was justifiable concern to the time because BSE.
As they're put fear into the hearts of overseas buyers at times in the past.
Gradually little by little we've been.
Getting your confidence back once more that it's taken -- -- what do you think it cattle prices where were they where where they heading.
Well we took a dramatic drop over the past week today we saw some recovery of the nearby months moving up a little bit.
Over the long haul I think many of us remain bullish for the going to be these hiccups along the way.
Bullish because we have the smallest we've heard the United States -- more than fifty years it's going to take awhile actually for that recovery to take place to build numbers once more.
You referred to BSE which is mad cow disease for those of us they can't say that -- scientific name but how then really is is gonna affect mistake price at the end of the day I think that's everybody wants in now because.
Back in 2003 it's.
Fell off a cliff when we first had mad cow in this country.
-- that's not gonna happen again but.
Do the -- -- and get more expensive.
You know the prices probably will be under upward pressure and -- going to be these incidents probably Sanchez that quote peace line.
The lead finally -- to beef.
Episode that we had followed closely behind by BSE but the bottom line as it just will take time to builders heard so that will continue to -- the upward pressure on the prices now.
Export business is essential but we need to continue to have Canada.
Mexico Japan South Korea buying RB if actually the domestic market has been a little bit sluggish and I think part of that relates to the fact.
That we've had very expensive fuel to put on a gas tanks in the past few months.
And also Max what about the price of coal because the theme is a big an issue when -- when you considering price of Tracy's point about how expensive -- the -- is going to be.
If coal prices are up then now that's gonna -- as well as and that.
You're right it could retire that recovery I mean it could put it off.
Let's say for example that we get a little bit of a weather scare in us corn market this year we need we need a big crop -- the United States the Chinese continue to buy.
Last Friday we had a reported sale to unknown destinations.
Probably Chinese business that the biggest one day sale reported in 21 years.
They took over the corn in one buying spree there.
That we grew and one county the biggest corn -- get a little -- last year and now that said we need a good crop this year.
And if there are some problems along the way the price gets elevated on corn.
Their cattle industry could look at this and say wait a minute we're gonna put the brakes on this -- too expensive.
Max you know we export a ton of beef Canada Mexico Japan South -- do you worry about -- global recession Spain's back in it actually announce that today.
Do you worry that they're not gonna be buying as much don't lower.
That's a great question and indeed we need to be concerned about it.
But we're seeing that growing appetite especially among the Asian nations we have been hurt some others like European demand.
Exports are so vital -- you go back ten or fifteen years.
Exports didn't matter that much in the domestic cattle market in the United States now they've come to -- quite a bit.
All right we're at a time Max comes from the -- of the CME thank you so much for joining us modules cattle prices critical of baseball games got a crew people.
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