Retailers are price driven. They skillfully read the packers profits and share in those profits. If this lack of price discovery continues, the cow herd will be basically wiped out. Last fall calves were close to half price compared to three years ago. Add the increase in grain prices and the problem becomes overwhelming.
Finished cattle are far undervalued and likewise, so are the calves produced by the cowman.
Simply go to the restaurant and grocery store and compare prices. They are the highest in history. Exports represent a major percent of our highest quality beef, which is sold at major price premiums. How can anyone justify this. I have been studying the meat business through retail for the past year.