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...

During recent years, the feeder cattle industry has experienced financial instability. This paper provides a possible marketing strategy that may help reduce this financial instability by providing a Prehedging Strategy for the feedlot operator. The Prehedging Strategy establishes a dynamic...

A dynamic model is used to estimate quarterly price differences between steers and heifers in the feeder, slaughter, and carcass markets. For cattle within the same weight and grade range, their price differences are hypothesized to be influenced by seasonal, economic, and partly reflecting time...

Several hedging strategies for fat cattle are compared using actual feedlot performance information for a period of 6.5 years and 747 pens of fat cattle. Results show that cattle feeding was not profitable (a $24.50 per head cash market loss) but a carefully chosen hedging strategy could have...

Conceptual problems in model specification of beef supply response studies are investigated and a simultaneous equation model is formulated to estimate annual U.S. carcass supply, demand, and inventories of beef. Three basic issues are addressed: (a) disaggregation, (b) simultaneity, and (c)...

A quarterly econometric model of the Hawaii beef production sector is estimated. Energy prices influence the model through Hawaii beef and feed prices which are a function of Mainland-to-Hawaii freight rates. Energy prices also influence the decision of whether to allocate feeder animals to...

The appropriate specification of expectations in empirical models of supply response or factor demand is discussed. A general model that admits both extrapolative and rational expectations is formulated and analyzed. The model is used to investigate the decision making process of cattle feeders...

Beginning with the September 1986 contract, feeder cattle futures have been settled based on cash settlement rather than physical delivery. The effect that cash settlement will have on hedging risk for feeder cattle was estimated using Arkansas prices for 1977-86, but the results should be...

This article applies recent developments in time-series modeling to analyze the retail prices of beef, pork, and chicken. Specifically, generalized autoregressive conditional heteroscedasticity (GARCH) models were fitted to these data to determine if, unlike more traditional time-series models,...

Milk production supply response at the regional level for the U.S. dairy sector is estimated through the use of dynamic dual models. Adjustment rates and elasticity measures are presented, and then the estimated parameter coefficients are used to stimulate shifts in production resulting from...