reports will provide historical data that producers can
use in planning future production. They will also
reflect the current market situation.
IMPLICATIONS FOR THE SOUTH
Differences in market structure, beef cattle
production systems and concentrations of various
weights and types of cattle influence cattle pricing.
The majority of calves and yearlings sold through
auction markets in feeder calf-producing states (such
as Louisiana) are purchased by a relatively few order
buyers. These buyers purchase animals to fill orders
according to specified weight, grade and price
specifications. However, due to seasonal patterns of
marketing for various types and weights of cattle,
these buyers frequently purchase animals outside of
these weight and grade specifications. These factors
may greatly modify seasonal price patterns among
market areas of the South. The pricing disposition of
buyers throughout the year, rather than purchase
order specifications, should be reflected in the price
reporting classifications.
Livestock price reporting systems serve a twofold
purpose: (1) they provide prices for current
marketing decisions and are an indicator of market
activity and, (2) they furnish a historical record of
prices and price relationships for decision-making.
Price reporting systems should differentiate
among weight groups with unlike seasonal pricing
patterns. The use of 100-pound weight intervals
represents an improvement in quality of price data
available for management decisions. However, this
procedure may not adequately reflect seasonal price
patterns. For example, this procedure applied to the
Louisiana data would misplace, according to seasonal
price patterns, three 25-pound interval groups and
distort seasonal price pattern estimates for three
100-pound interval groups. This could considerably
reduce the reliability of the price data for estimating
future prices.
The categories used by a price reporting agency
should be based upon the needs of its clientele. The
price reporting categories must adequately describe
animals of differing value and utility as well as
provide for efficiency in collection, distribution and
interpretation of information contained therein.
While it would be desirable for comparative purposes
to have uniform price reporting categories among
areas, a uniform set of categories for all areas of the
South (or the United States) may not adequately
serve the information needs of clientele within the
various areas.
A logical compromise may be for each price
reporting agency to develop a reporting system that
reflects the seasonal patterns of prices among market
areas for which it is responsible. The resulting
historical price data would permit accounting for
both weight and seasonal differences in price, even
though animals were purchased and sold in market
areas serviced by different price reporting agencies.
REFERENCES
[1 ] The Drovers Journal. The Food and Agricultural Division. Kansas City, Kan.: Vance Publishing Corp.
[2] Louisiana Dept, of Agriculture. Livestock Market Report. Livestock Market News Service, Marketing
Division. Baton Rouge, La.: Louisiana Dept, of Agriculture.
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