Quote:
Originally Posted by REDeYeS88
if this is correct, the bounce upwards is a result of the mcrib, not a reason for it.
the mcrib is obviously a commodity trade that only comes around when pork futures are down. there is a cap on the price they can sell the pork they buy (the mcrib), and there is a profit they need to make to even make it worth their while (sell price - buy price). it's not worth it to them when pork prices aren't low.
I think I agree with this--if I understand it correctly.
McD would only offer the McRib when pork prices were low to maximize their profits--unless they were to increase their McRib prices, of course.
However, simply by being such heavy buyers in the market, they do push the prices higher. I am certain McD has much brighter people than me making those decisions.