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Impact of Mandatory Price Reporting on Fed Cattle Market Integration

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  • Pendell, Dustin L.
  • Schroeder, Ted C.

Abstract

Geographic fed cattle markets are important because cattle are bulky and perishable, and production and consumption areas are separated. These characteristics make cattle transportation costly and can contribute to segmented markets. This study uses USDA-AMS reported fed cattle market price data from five U.S. regional fed cattle markets to investigate the effects of mandatory price reporting on spatial market integration. Results indicate these markets have been, and remain, highly cointegrated after implementation of mandatory price reporting (MPR). Following introduction of mandatory price reporting, the five regional fed cattle markets have become more fully integrated (i.e., prices tend to move more closely one-for-one following introduction of MPR).

Suggested Citation

  • Pendell, Dustin L. & Schroeder, Ted C., 2006. "Impact of Mandatory Price Reporting on Fed Cattle Market Integration," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 31(3), pages 1-12, December.
    • Handle: RePEc:ags:jlaare:8622
    DOI: 10.22004/ag.econ.8622
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    1. Ramsey, Austin F. & Goodwin, Barry K., 2024. "A Different 'Law of One Price:' Missouri's Livestock Marketing Law of 1999," 2024 Annual Meeting, July 28-30, New Orleans, LA 343679, Agricultural and Applied Economics Association.
    2. Franken, Jason R.V. & Parcell, Joe L., 2012. "Evaluation of Market Thinness for Hogs and Pork," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 44(4), pages 461-475, November.
    3. Johnson, Matthew & Yu, T. Edward & Griffith, Andrew P. & Jensen, Kimberly L. & Cho, Seong-Hoon, 2015. "Regional Dynamic Price Relationships between Distillers Dried Grains and Feed Grains," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 196900, Southern Agricultural Economics Association.
    4. Van Winkle, Tyler W. & Schroeder, Ted C., 2008. "Spatial Price Discovery, Dynamics, and Leadership in Evolving Distiller’s Grain Markets," 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas 6933, Southern Agricultural Economics Association.
    5. Fausti, Scott W. & Diersen, Matthew A. & Qasmi, Bashir A., 2007. "Public Price Reporting in the Cash Market for Live Cattle: A Spatial Market Approach," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 36(2), pages 1-13, October.
    6. Schroeder, Ted C. & Tonsor, Glynn T. & Coffey, Brian K., 2019. "Commodity futures with thinly traded cash markets: The case of live cattle," Journal of Commodity Markets, Elsevier, vol. 15(C), pages 1-1.
    7. Lee, Yoonsuk & Ward, Clement E. & Brorsen, B. Wade, 2010. "Relationships among Prices across Alternative Marketing Arrangements for Fed Cattle and Hogs," 2010 Annual Meeting, February 6-9, 2010, Orlando, Florida 56282, Southern Agricultural Economics Association.
    8. Sungill Han & Chanjin Chung & Prasanna Surathkal, 2017. "Impacts of Increased Corn Ethanol Production on Price Asymmetry and Market Linkages in Fed Cattle Markets," Agribusiness, John Wiley & Sons, Ltd., vol. 33(3), pages 378-402, June.
    9. Ganneval, S., 2016. "Spatial price transmission on agricultural commodity markets under different volatility regimes," Economic Modelling, Elsevier, vol. 52(PA), pages 173-185.
    10. Fausti, Scott W. & Qasmi, Bashir A. & Diersen, Matthew A., 2007. "Public Reporting of Fed Cattle Grid Prices: Policy Reform Consequences," Economics Staff Papers 7297, South Dakota State University, Department of Economics.
    11. Christopher C. Pudenz & Lee L. Schulz, 2024. "Multi‐plant coordination in the U.S. beef packing industry," American Journal of Agricultural Economics, John Wiley & Sons, vol. 106(1), pages 382-415, January.
    12. Pozo, Veronica F. & Bejan, Vladimir & Tejeda, Hernan, 2016. "Disentangling Supply and Demand Shocks to Identify Changes in the Live Cattle’s Market Structure Post Livestock Mandatory Price Reporting Act," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236234, Agricultural and Applied Economics Association.
    13. Koontz Stephen R & Ward Clement E, 2011. "Livestock Mandatory Price Reporting: A Literature Review and Synthesis of Related Market Information Research," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 9(1), pages 1-33, July.
    14. Kalyn Coatney & Jesse Tack, 2014. "The Impacts of an Antitrust Investigation: A Case Study in Agriculture," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 44(4), pages 423-441, June.
    15. Chanjin Chung & Johnna Rushin & Prasanna Surathkal, 2018. "Impact of the livestock mandatory reporting act on the vertical price transmission within the beef supply chain," Agribusiness, John Wiley & Sons, Ltd., vol. 34(3), pages 562-578, June.
    16. Brester, Gary W. & Swanser, Kole & Crosby, Brett, 2020. "Adding Weight to a Thinning Live Cattle Market," MSU Staff Papers 305569, Montana State University > Department of Agricultural Economics and Economics.
    17. Lewis, Karen E. & Tonsor, Glynn T., 2011. "The Impact of Ethanol Production on Spatial Grain Market Relationships," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 14(4), pages 1-14, November.
    18. Solano-Hermosilla, Gloria & Barreiro-Hurle, Jesus & Adewopo, Julius B. & Gorrín-González, Celso, 2022. "Increasing engagement in price crowdsourcing initiatives: Using nudges in Nigeria," World Development, Elsevier, vol. 152(C).
    19. Rahman, Kazi Tamim & Akter, Morsalina & Miah, M.A. Monayem & Palash, M. Salauddin, 2020. "Livestock Market Integration And Price Dynamics In The United States," Bangladesh Journal of Agricultural Economics, Bangladesh Agricultural University, vol. 40(1&2), February.
    20. Li, Yunhan & Li, Wenying & Dorfman, Jeffrey H., 2017. "Examining Dynamically Changing Cattle Market Linkages with Inventory as Controlled Transitions," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 259151, Agricultural and Applied Economics Association.
    21. Gloria Solano Hermosilla & Pavel Ciaian & Jonas Kathage, 2019. "Market transparency: Costs of external data reporting by private operators in the EU agri-food supply chain - A survey-based analysis," JRC Research Reports JRC116927, Joint Research Centre.
    22. Franken, Jason R.V. & Parcell, Joseph L. & Tonsor, Glynn T., 2011. "Impact of Mandatory Price Reporting on Hog Market Integration," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 43(2), pages 1-13, May.
    23. Blank, Steven C. & Saitone, Tina L. & Sexton, Richard J., 2016. "Calf and Yearling Prices in the Western United States: Spatial, Quality, and Temporal Factors in Satellite Video Auctions," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 41(3), pages 1-23.

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    Livestock Production/Industries; Marketing;

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