Factors Affecting Quality Grade Discounts for Fed Cattle

Prices for Choice and Select grade fed cattle are derived from wholesale and retail beef markets. Choice-Select price discounts are a key component of fed cattle pricing, whether packers purchase fed cattle on a live weight, dressed weight, or grid. This study identifies supply, demand, and other factors affecting the Choice-Select discount series using an adaptive expectations model. It is found that the lagged value of the discount as well as the percentage grading Choice exert statistically significant influences on the discount, while neither the boxed beef price nor seasonality affect the discount.


Issue Date:
Jan 17 2012
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/119814
Total Pages:
11




 Record created 2017-04-01, last modified 2017-04-26

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