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Publication

Relationships Among Prices Across Alternative Marketing Arrangements for Fed Cattle and Hogs

Lee, Yoonsuk
Abstract
Negotiated cash market prices and individual prices for AMAs formed a long-run equilibrium in bivariate and multivariate models for fed cattle and hogs. That is, prices for fed cattle and hogs do not move too far away from each other. When prices enter in long-run terms, the prices had a negative relationship in bivariate models, and negotiated cash prices tended to be more stable than individual AMAs for fed cattle. However, in the hog case, some AMA prices became more stable than the negotiated cash prices. Negotiated cash prices played an important role in price discovery based on the long-run relationships among AMAs.
Date
2009-07-01
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