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Abstract
The lead-lag relationships present in the regional price discovery
process are important indicators of market performance. Differences across
markets in the speed of adjustment to evolving information may have
implications for pricing efficiency within these markets. This study
estimates intertemporal price relationships among 11 regional slaughter cattle
markets. Larger-volume markets, located in the major cattle feeding regions,
were the dominant price discovery locations. Price adjustments across markets
were completed in one to two weeks in the large-volume markets located
relatively close to each other and in two to three weeks in the more remote,
smaller-volume markets.