Procurement Price Relationships for Fed Cattle and Hogs: Importance of the Cash Market in Price Discovery
ABSTRACT Reduced reliance on cash markets for fed cattle and hogs raises questions about the role of cash prices in price discovery. Weekly data from mandatory price reports were used to determine whether cash market prices were cointegrated with and exhibited Granger causality with other procuremen...
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| Veröffentlicht in: | Agribusiness (New York, N.Y.) N.Y.), 2012-03, Vol.28 (2), p.135-147 |
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| container_title | Agribusiness (New York, N.Y.) |
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| creator | Lee, Yoonsuk Ward, Clement E. Brorsen, B. Wade |
| description | ABSTRACT
Reduced reliance on cash markets for fed cattle and hogs raises questions about the role of cash prices in price discovery. Weekly data from mandatory price reports were used to determine whether cash market prices were cointegrated with and exhibited Granger causality with other procurement prices. Cash prices were cointegrated with all but one cattle and one hog procurement price series over the 2001–2010 period. Cash market prices Granger cause all other procurement prices and bidirectional causality was found in some but not all cases. Results for three 3‐year subperiods showed some decline in cointegration and causality for hogs. The cash market remains important for price discovery but continuing market thinness, especially in hogs, raises questions regarding viability of the cash market in the future. |
| doi_str_mv | 10.1002/agr.21288 |
| format | Article |
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Reduced reliance on cash markets for fed cattle and hogs raises questions about the role of cash prices in price discovery. Weekly data from mandatory price reports were used to determine whether cash market prices were cointegrated with and exhibited Granger causality with other procurement prices. Cash prices were cointegrated with all but one cattle and one hog procurement price series over the 2001–2010 period. Cash market prices Granger cause all other procurement prices and bidirectional causality was found in some but not all cases. Results for three 3‐year subperiods showed some decline in cointegration and causality for hogs. The cash market remains important for price discovery but continuing market thinness, especially in hogs, raises questions regarding viability of the cash market in the future.</description><identifier>ISSN: 0742-4477</identifier><identifier>EISSN: 1520-6297</identifier><identifier>DOI: 10.1002/agr.21288</identifier><identifier>CODEN: AGRBEY</identifier><language>eng</language><publisher>Hoboken: Blackwell Publishing Ltd</publisher><subject>Agribusiness ; Bidirectional ; Cash ; Cattle ; Causality ; Hogs ; Livestock industry ; Market prices ; Markets ; Procurement ; Q13 ; Q18 ; Studies ; Swine ; Viability</subject><ispartof>Agribusiness (New York, N.Y.), 2012-03, Vol.28 (2), p.135-147</ispartof><rights>2012 Wiley Periodicals, Inc.</rights><rights>Copyright Wiley Periodicals Inc. Spring 2012</rights><lds50>peer_reviewed</lds50><woscitedreferencessubscribed>false</woscitedreferencessubscribed><citedby>FETCH-LOGICAL-c4998-6b38a72a7d19363869b59b36823c65c2898b1e742002e865ad0bf2e9cdb34adb3</citedby><cites>FETCH-LOGICAL-c4998-6b38a72a7d19363869b59b36823c65c2898b1e742002e865ad0bf2e9cdb34adb3</cites></display><links><openurl>$$Topenurl_article</openurl><openurlfulltext>$$Topenurlfull_article</openurlfulltext><thumbnail>$$Tsyndetics_thumb_exl</thumbnail><linktopdf>$$Uhttps://onlinelibrary.wiley.com/doi/pdf/10.1002%2Fagr.21288$$EPDF$$P50$$Gwiley$$H</linktopdf><linktohtml>$$Uhttps://onlinelibrary.wiley.com/doi/full/10.1002%2Fagr.21288$$EHTML$$P50$$Gwiley$$H</linktohtml><link.rule.ids>315,781,785,1418,4009,27926,27927,45576,45577</link.rule.ids><backlink>$$Uhttp://econpapers.repec.org/article/wlyagribz/v_3a28_3ay_3a2012_3ai_3a2_3ap_3a135-147.htm$$DView record in RePEc$$Hfree_for_read</backlink></links><search><creatorcontrib>Lee, Yoonsuk</creatorcontrib><creatorcontrib>Ward, Clement E.</creatorcontrib><creatorcontrib>Brorsen, B. Wade</creatorcontrib><title>Procurement Price Relationships for Fed Cattle and Hogs: Importance of the Cash Market in Price Discovery</title><title>Agribusiness (New York, N.Y.)</title><addtitle>Agribusiness</addtitle><description>ABSTRACT
Reduced reliance on cash markets for fed cattle and hogs raises questions about the role of cash prices in price discovery. Weekly data from mandatory price reports were used to determine whether cash market prices were cointegrated with and exhibited Granger causality with other procurement prices. Cash prices were cointegrated with all but one cattle and one hog procurement price series over the 2001–2010 period. Cash market prices Granger cause all other procurement prices and bidirectional causality was found in some but not all cases. Results for three 3‐year subperiods showed some decline in cointegration and causality for hogs. The cash market remains important for price discovery but continuing market thinness, especially in hogs, raises questions regarding viability of the cash market in the future.</description><subject>Agribusiness</subject><subject>Bidirectional</subject><subject>Cash</subject><subject>Cattle</subject><subject>Causality</subject><subject>Hogs</subject><subject>Livestock industry</subject><subject>Market prices</subject><subject>Markets</subject><subject>Procurement</subject><subject>Q13</subject><subject>Q18</subject><subject>Studies</subject><subject>Swine</subject><subject>Viability</subject><issn>0742-4477</issn><issn>1520-6297</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2012</creationdate><recordtype>article</recordtype><sourceid>X2L</sourceid><recordid>eNp1kctu1DAUhiMEEkPLgjewxAYWaX1JfGFXpnTaMoWqAsHOcpKTjksSp7anJTw9HlK6QGJxLovv_OeWZa8IPiAY00Nz7Q8ooVI-yRakpDjnVImn2QKLguZFIcTz7EUINxhjxbFYZPbSu3rroYchoktva0BX0Jlo3RA2dgyodR6dQIOWJsYOkBkadOquwzt01o_ORzOkCteiuIGEhA26MP4HRGSHB7VjG2p3B37az561pgvw8iHuZV9PPnxZnubrz6uz5dE6rwulZM4rJo2gRjREMc4kV1WpKsYlZTUvayqVrAikbdK2IHlpGly1FFTdVKwwye1lb2bd0bvbLYSo-zQCdJ0ZwG2DJlyQQjGJWUJf_4PeuK0f0nSaYCoKLEshE_V2pmrvQvDQ6tHb3vgpQXp3dJ2Orv8cPbHnM-thhPoRvO-mxNjql77TzFCZ3LRLMKEp2F2abExGWKlJIfQm9knscBa7tx1M_--qj1ZXf9vnc4UNEX4-VqSXaC6YKPW3TytNLt6vC_b9WH9kvwHq1aoS</recordid><startdate>20120301</startdate><enddate>20120301</enddate><creator>Lee, Yoonsuk</creator><creator>Ward, Clement E.</creator><creator>Brorsen, B. Wade</creator><general>Blackwell Publishing Ltd</general><general>John Wiley & Sons, Ltd</general><general>Wiley Periodicals Inc</general><scope>BSCLL</scope><scope>DKI</scope><scope>X2L</scope><scope>AAYXX</scope><scope>CITATION</scope><scope>7ST</scope><scope>C1K</scope><scope>SOI</scope><scope>7TA</scope><scope>8FD</scope><scope>JG9</scope></search><sort><creationdate>20120301</creationdate><title>Procurement Price Relationships for Fed Cattle and Hogs: Importance of the Cash Market in Price Discovery</title><author>Lee, Yoonsuk ; Ward, Clement E. ; Brorsen, B. Wade</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-c4998-6b38a72a7d19363869b59b36823c65c2898b1e742002e865ad0bf2e9cdb34adb3</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>2012</creationdate><topic>Agribusiness</topic><topic>Bidirectional</topic><topic>Cash</topic><topic>Cattle</topic><topic>Causality</topic><topic>Hogs</topic><topic>Livestock industry</topic><topic>Market prices</topic><topic>Markets</topic><topic>Procurement</topic><topic>Q13</topic><topic>Q18</topic><topic>Studies</topic><topic>Swine</topic><topic>Viability</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>Lee, Yoonsuk</creatorcontrib><creatorcontrib>Ward, Clement E.</creatorcontrib><creatorcontrib>Brorsen, B. Wade</creatorcontrib><collection>Istex</collection><collection>RePEc IDEAS</collection><collection>RePEc</collection><collection>CrossRef</collection><collection>Environment Abstracts</collection><collection>Environmental Sciences and Pollution Management</collection><collection>Environment Abstracts</collection><collection>Materials Business File</collection><collection>Technology Research Database</collection><collection>Materials Research Database</collection><jtitle>Agribusiness (New York, N.Y.)</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>Lee, Yoonsuk</au><au>Ward, Clement E.</au><au>Brorsen, B. Wade</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>Procurement Price Relationships for Fed Cattle and Hogs: Importance of the Cash Market in Price Discovery</atitle><jtitle>Agribusiness (New York, N.Y.)</jtitle><addtitle>Agribusiness</addtitle><date>2012-03-01</date><risdate>2012</risdate><volume>28</volume><issue>2</issue><spage>135</spage><epage>147</epage><pages>135-147</pages><issn>0742-4477</issn><eissn>1520-6297</eissn><coden>AGRBEY</coden><abstract>ABSTRACT
Reduced reliance on cash markets for fed cattle and hogs raises questions about the role of cash prices in price discovery. Weekly data from mandatory price reports were used to determine whether cash market prices were cointegrated with and exhibited Granger causality with other procurement prices. Cash prices were cointegrated with all but one cattle and one hog procurement price series over the 2001–2010 period. Cash market prices Granger cause all other procurement prices and bidirectional causality was found in some but not all cases. Results for three 3‐year subperiods showed some decline in cointegration and causality for hogs. The cash market remains important for price discovery but continuing market thinness, especially in hogs, raises questions regarding viability of the cash market in the future.</abstract><cop>Hoboken</cop><pub>Blackwell Publishing Ltd</pub><doi>10.1002/agr.21288</doi><tpages>13</tpages></addata></record> |
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| identifier | ISSN: 0742-4477 |
| ispartof | Agribusiness (New York, N.Y.), 2012-03, Vol.28 (2), p.135-147 |
| issn | 0742-4477 1520-6297 |
| language | eng |
| recordid | cdi_proquest_miscellaneous_1671493803 |
| source | RePEc; Wiley Online Library Journals; EBSCOhost Business Source Complete |
| subjects | Agribusiness Bidirectional Cash Cattle Causality Hogs Livestock industry Market prices Markets Procurement Q13 Q18 Studies Swine Viability |
| title | Procurement Price Relationships for Fed Cattle and Hogs: Importance of the Cash Market in Price Discovery |
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