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Assessing The Relationship Between Market Factors And Regional Price Dynamics In U.S. Cattle Markets

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  • Walburger, Allan M.
  • Foster, Kenneth A.

Abstract

Regional live cattle prices are decomposed into two components: (a) a trend common to all regional cattle price series and (b) regional deviations or price dynamics around that trend. Tests are developed to determine if market factors are related to the regional price deviations around a common trend. Slaughter volume, distance between a market and the next closest, and forward contract deliveries are significantly related to price deviations from the estimated common trend.

Suggested Citation

  • Walburger, Allan M. & Foster, Kenneth A., 1997. "Assessing The Relationship Between Market Factors And Regional Price Dynamics In U.S. Cattle Markets," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 22(01), pages 1-12, July.
    • Handle: RePEc:ags:jlaare:31009
    DOI: 10.22004/ag.econ.31009
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    References listed on IDEAS

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    7. Unknown, 1990. "Structural Change in Livestock: Causes, Implications, Alternatives," Research Institute on Livestock Pricing 232728, Virginia Polytechnic Institute and State University, Department of Agricultural and Applied Economics.
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    10. Kenneth A. Foster & Arthur M. Havenner & Allan M. Walburger, 1995. "System Theoretic Time-Series Forecasts of Weekly Live Cattle Prices," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(4), pages 1012-1023.
    11. Quail, Gwen & Marion, Bruce & Geithman, Frederick & Marquardt, Jeffrey, 1986. "The Impact of Packer Buyer Concentration on Live Cattle Prices," Working Papers 204089, University of Wisconsin-Madison, Department of Agricultural and Applied Economics, Food System Research Group.
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    Citations

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    Cited by:

    1. Parcell, Joe L. & Schroeder, Ted C. & Dhuyvetter, Kevin C., 2000. "Factors Affecting Live Cattle Basis," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 32(3), pages 531-541, December.
    2. Abahana, Zelalem & Diersen, Matthew A. & Li, Jing & Klein, Nicole L., 2010. "Fed Cattle Forward Contract Volume and Basis Relationship," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61150, Agricultural and Applied Economics Association.
    3. Boehlje, Michael, 2002. "Risk In U.S. Agriculture: New Challenges And New Approaches," Staff Papers 28614, Purdue University, Department of Agricultural Economics.

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    Keywords

    Livestock Production/Industries;

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