Captive supplies and the spot market price of fed cattle: The plant-level relationship

John Schroeter and Azzeddine Azzam

Agribusiness, 2003, vol. 19, issue 4, 489-504

Abstract: Numerous articles in the agricultural economics literature investigate the empirical relationship between the spot market price of fed cattle and the volume of packers' precommitted, or “captive,” supplies of cattle. In this article, we use an extensive data set on the cattle procurement activities of four large packing plants in the Texas Panhandle from early 1995 through mid-1996 to examine this relationship at the plant-level. We find evidence to support the hypothesis that plants that anticipate near-term future deliveries of captive supply cattle that are high relative to their regional-market rivals' degrees of reliance on captive supplies tend to pay spot market prices that are below average. The effect, while statistically significant, is relatively small in magnitude, however. [EconLit citations: Q130, L200] © 2003 Wiley Periodicals, Inc. Agribusiness 19: 489-504, 2003.

Date: 2003
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (23)

Downloads: (external link)
http://hdl.handle.net/10.1002/agr.10070 Link to full text; subscription required (text/html)

Related works:
Working Paper: Captive Supplies and the Spot Market Price of Fed Cattle: The Plant-Level Relationship (2003)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:agribz:v:19:y:2003:i:4:p:489-504

DOI: 10.1002/agr.10070

Access Statistics for this article

Agribusiness is currently edited by Ronald W. Cotterill

More articles in Agribusiness from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().