Economic Tidbits


“…it is important to remember that the supply of fed cattle and the demand for wholesale beef determines the price of fed cattle. To increase negotiated fed cattle prices, markets need to either reduce the supply of fed cattle or increase the demand for wholesale beef. Current policies by both government and industry have focused on increasing negotiated cash transactions helping in price discovery in a given week, but unlikely affect the underlying supply and demand fundamentals in the fed cattle market. Thus, they are unlikely to increase the local cash price.” Market Insights: Response to Negotiated Cash Transactions, by Elliott Dennis, Ph.D., Assistant Professor, Livestock Marketing Economist, Department of Agricultural Economics, University of Nebraska-Lincoln, printed in Nebraska Cattlemen, December 2020.

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