Seller-Offered Forward Contracts: An Additional Benefit to Cattle Producers from Satellite Video Auctions
Steven Blank (),
Tina L. Saitone and
Richard J. Sexton
No 162323, 2014 Annual Meeting, February 1-4, 2014, Dallas, Texas from Southern Agricultural Economics Association
Abstract:
Satellite video auctions make possible producer/seller-offered forward contracting. We outline a pricing theory for these markets for feeder cattle. Empirically, we uncover price premiums received for forward contracted cattle, indicating that satellite video auctions offer ranchers a market outlet that does not carry the pricing disadvantages of traditional forward contracts.
Keywords: Demand and Price Analysis; Livestock Production/Industries; Marketing (search for similar items in EconPapers)
Pages: 29
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:ags:saea14:162323
DOI: 10.22004/ag.econ.162323
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