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Seller-Offered Forward Contracts: An Additional Benefit to Cattle Producers from Satellite Video Auctions

Author

Listed:
  • Blank, Steven C.
  • Saitone, Tina L.
  • Sexton, Richard J.

Abstract

Satellite video auctions make possible producer/seller-offered forward contracting. We outline a pricing theory for these markets for feeder cattle. Empirically, we uncover price premiums received for forward contracted cattle, indicating that satellite video auctions offer ranchers a market outlet that does not carry the pricing disadvantages of traditional forward contracts.

Suggested Citation

  • Blank, Steven C. & Saitone, Tina L. & Sexton, Richard J., 2014. "Seller-Offered Forward Contracts: An Additional Benefit to Cattle Producers from Satellite Video Auctions," 2014 Annual Meeting, February 1-4, 2014, Dallas, Texas 162323, Southern Agricultural Economics Association.
  • Handle: RePEc:ags:saea14:162323
    DOI: 10.22004/ag.econ.162323
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    File URL: http://ageconsearch.umn.edu/record/162323/files/cattle%20forward%20contracting%20-%20SAEA%20paper.pdf
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    References listed on IDEAS

    as
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