FED CATTLE SPATIAL TRANSACTIONS PRICE RELATIONSHIPS

Delineation of geographic markets for fed cattle is essential in monitoring price behavior and determining geographic markets. This study uses transactions data from 28 U.S. fed cattle slaughter plants to determine the extent of the geographic market for fed cattle. Results indicate a national market for fed cattle with prices across most plants cointegrated. In addition, price discovery originates predominantly at plants located in Nebraska, and typically one-third of the total price adjustment to spatial integration occurs in one day.