![]() ![]() One of the challenges is maintaining the reward for quality if the method of pricing changes. Premiums that were not present prior to AMAs are now common. Cattle pricing and market signals have evolved over the last 40 years. “Those increased costs are estimated to result in lower calf prices and higher beef prices. ![]() Legislation or efforts to increase negotiated trade will increase industry costs,” according to the AFPC study. “The beef industry’s move to AMAs (alternative marketing arrangements) represents part of the progression to value-based marketing and economic pressures to reduce transaction costs. This notion is behind legislative proposals calling for mandated levels of weekly regional negotiated cash fed cattle trade. As more cattle trade through AMAs and outside of the spot cash market, some argue price discovery erodes. Arguably, the most complex surrounds Alternative Marketing Agreements (AMAs), which enable pricing cattle based on individual value rather than averages, reduce transaction costs and increase marketing efficiency, among other things. Leading agricultural economists from across the nation address a number of key cattle market issues at the heart of current debate and legislative proposals. Ultimately, USDA partnered with the AFPC. House of Representatives asking USDA to commission a study to look into the issues surrounding fed cattle pricing. It stems from the Committee on Agriculture in the U.S. Beef Supply Chain: Issues and Challenges. Last week, the Texas A&M University Agricultural and Food Policy Center (AFPC) issued proceedings from an in-depth workshop on cattle markets titled The U.S. The NASDAQ was down 74 points.įundamental economics and credible research continue to suggest voluntary efforts to improve cattle price discovery offer less risk and more opportunity than government mandates. The Dow Jones Industrial Average closed 9 points lower. ![]() The biggest loss in jobs was seen from government entities, although a bright side came from leisure and hospitality, which nearly doubled the rate of jobs added in that sector. Only 194,000 workers were added last month, even though the jobless rate declined to 4.8% – partly due to folks who have quit looking for jobs. financial indices fell on Friday after jobs data came out weaker than expected for September, right as most expect the Federal Reserve to start tapering efforts. Soybean futures closed mostly 4¢ to 7¢ lower. Select was $1.74 lower at $262.74/cwt.Ĭorn futures closed mostly 1¢ to 3¢ lower. They closed an average of $3.92 week to week on Friday.Ĭhoice boxed beef cutout value was $2.03 lower Friday afternoon at $283.27/cwt. Similarly, Live Cattle futures closed narrowly mixed from an average of 37¢ lower to an average of 17¢ higher. Week to week on Friday, they closed an average of $5.17 higher. Dressed prices were $196, which was steady in Nebraska and toward the top of last week’s price range in the western Corn Belt.įeeder Cattle futures closed an average of 39¢ lower as traders positioned for the weekend following the surge higher. Prices were steady in the western Corn Belt at $122 but mostly steady to $2 higher in Nebraska at $122-$124. in Kansas and $124 in the Texas Panhandle. Live prices last week were steady in the Southern Plains at $122-$124/cwt. Negotiated cash fed cattle trade ranged from a standstill to mostly inactive with light demand in all major feeding regions through Friday afternoon with too few transactions to trend, according to the Agricultural Marketing Service. ![]()
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