Virginia Tech
    • Log in
    View Item 
    •   VTechWorks Home
    • ETDs: Virginia Tech Electronic Theses and Dissertations
    • Masters Theses
    • View Item
    •   VTechWorks Home
    • ETDs: Virginia Tech Electronic Theses and Dissertations
    • Masters Theses
    • View Item
    JavaScript is disabled for your browser. Some features of this site may not work without it.

    Interaction between the cattle feeding sector and the live cattle futures market: implications to the stability of short-run cash slaughter cattle prices

    Thumbnail
    View/Open
    LD5655.V855_1985.K654.pdf (3.741Mb)
    Downloads: 123
    Date
    1985
    Author
    Koontz, Stephen R.
    Metadata
    Show full item record
    Abstract
    The short-run interaction between the cattle feeding sector, as represented by Cattle Fax member feedlots, and the live cattle futures market is examined. The purpose of this research is to explore the simultaneity between placement decisions made in the cattle feeding sector and the price discovery process for distant contracts within the live cattle futures market. The efficiency of these processes will have implications to variability in supplies and thus, cash market prices for fed cattle. Input demand functions for feeder cattle were estimated as a function of numerous economic and technical factors. These modeling efforts reveal that cattle feeders consistently use distant futures prices in the formulation of expected prices when making placement decisions. Lead/lag analyses were conducted between the Cattle Fax placement series and the live cattle futures price series. Results from Granger type models reveal the live cattle futures market efficiently gathers and incorporates information on future supply conditions in the price discovery process for distant contracts. The recursive system created by these two models was examined and was found to be stable. The emergence of new information, pertinent to the feeding sector and the live cattle futures market, will cause orderly shifts to new equilibrium levels of placements of cattle on feed and distant live cattle futures prices. This research supports the conclusion that, because of the nature of the interaction between the live cattle futures market and the cattle feeding sector, the existence of the live cattle futures market aids in stabilizing the flow of cattle placed on feed. The results of stable flows of cattle placed on feed should be relatively stable flows of fed cattle marketings, and relatively more stable cash slaughter cattle prices.
    URI
    http://hdl.handle.net/10919/50036
    Collections
    • Masters Theses [22193]

    If you believe that any material in VTechWorks should be removed, please see our policy and procedure for Requesting that Material be Amended or Removed. All takedown requests will be promptly acknowledged and investigated.

    Virginia Tech | University Libraries | Contact Us
     

     

    VTechWorks

    AboutPoliciesHelp

    Browse

    All of VTechWorksCommunities & CollectionsBy Issue DateAuthorsTitlesSubjectsThis CollectionBy Issue DateAuthorsTitlesSubjects

    My Account

    Log inRegister

    Statistics

    View Usage Statistics

    If you believe that any material in VTechWorks should be removed, please see our policy and procedure for Requesting that Material be Amended or Removed. All takedown requests will be promptly acknowledged and investigated.

    Virginia Tech | University Libraries | Contact Us