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Impacts From Captive Supplies On Fed Cattle Transaction Prices

Author

Listed:
  • Ward, Clement E.
  • Koontz, Stephen R.
  • Schroeder, Ted C.

Abstract

Increased use of noncash-price procurement methods has concerned cattlemen for the past several years. This research estimated impacts of captive supplies on transaction prices for fed cattle. Negative relationships were found between transaction prices and percentage deliveries from the inventory of forward contracted and marketing agreement cattle. However, impacts from the absolute size of the total captive supply inventory were not significant. Price differences were found among procurement methods with forward contract prices being much lower. On balance, captive supplies had small but often negative effects on fed cattle transaction prices.

Suggested Citation

  • Ward, Clement E. & Koontz, Stephen R. & Schroeder, Ted C., 1998. "Impacts From Captive Supplies On Fed Cattle Transaction Prices," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 23(2), pages 1-21, December.
    • Handle: RePEc:ags:jlaare:31205
    DOI: 10.22004/ag.econ.31205
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    References listed on IDEAS

    as
    1. Hayenga, Marvin L. & Koontz, Stephen R. & Schroeder, Ted C., 1996. "Definition of Regional Cattle Procurement Markets," Staff General Research Papers Archive 10562, Iowa State University, Department of Economics.
    2. Hayenga, Marvin L. & O'Brien, Daniel, 1992. "Packer Competition, Forward Contracting Price Impacts, and the Relevant Market for Fed Cattle," Staff General Research Papers Archive 11603, Iowa State University, Department of Economics.
    3. Ted C. Schroeder & Rodney Jones & James Mintert & Andrew P. Barkley, 1993. "The Impact of Forward Contracting on Fed Cattle Transaction Prices," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 15(2), pages 325-337.
    4. Clement E. Ward, 1993. "Comparative analysis of cattle slaughtering and fabricating costs," Agribusiness, John Wiley & Sons, Ltd., vol. 9(5), pages 441-451.
    5. Jones, Rodney D. & Schroeder, Ted C. & Mintert, James R. & Brazle, Frank, 1992. "The Impacts Of Quality On Cash Fed Cattle Prices," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 24(2), pages 1-14, December.
    6. Elam, Emmett W., 1992. "Cash Forward Contracting Versus Hedging Of Fed Cattle, And The Impact Of Cash Contracting On Cash Prices," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 17(01), pages 1-13, July.
    7. Jones, Rodney D. & Schroeder, Ted C. & Mintert, James R. & Brazle, Frank, 1992. "The Impacts Of Quality On Cash Fed Cattle Prices," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 24(2), pages 1-14, December.
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