Beef Buzz News
Understanding Price Discovery Is The Key To Improving It Says Texas A&M Economist David Anderson
Wed, 16 Sep 2020 08:22:22 CDT
There has been a lot of discussion in the cattle industry about improving price discovery, either by legislation or through the market process. Dr. David Anderson, Extension livestock market economist at Texas A & M University, believes we need to first understand what price discovery means.
Anderson was a featured speaker for the 2020 Virtual Cattle Raisers Convention underway online this week. The virtual conference replaced the Texas Southwestern Cattle Raisers Convention cancelled in March.
How does a buyer and seller agree on terms? Anderson asked.
Improving price discovery is a worthwhile goal, he said.
If we improve price discovery, we may not get a higher price if fundamentally there are a lot of supplies, Anderson said.
Discovery and determination are different things but closely related he said.
The number of actual transactions is key to determining price discovery.
The idea of how much is enough, how many cattle need to be traded to discover price, Anderson stated.
Research would suggest it may not take many transactions for a good price discovery, he said.
Particularly if the cattle being traded are relatively the same quality.
Volume is not everything, as we have seasonal and cyclical cattle supplies but the quality of cattle in a negotiated format is important too, Anderson said.
We want to be comparing apples with apples, Anderson said.
Transparency and the ability to balance the number of cattle with packer and feedlot capacity, go into the equation of an adequate price discovery.
We know we need more price discovery but how do we fix it, Anderson said.
There are various proposed legislative fixes but as an economist I tend to want to move towards a market solution, Anderson said.
Click on the LISTEN BAR below to hear more comments from Dr. David Anderson.
The Beef buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Network and is a regular audio feature found on this website as well. Click on the LISTEN BAR below for today’s show and check out our archives for older Beef Buzz shows covering the gamut of the beef cattle industry today.
Ron Hays Beef Buzzes With Dr. David Anderson
right-click to download mp3
WebReadyTM Powered by WireReady® NSI
Beef News
Cattle Herds Are Shrinking And Intensifying Focus On Packer Capacity, Says Randy Blach With CattleFax Fri, 18 Sep 2020 08:12:07 CDT
Cattle Industry Has Made a Remarkable Adjustment To Pandemic, Says Randy Blach, CattleFax CEO Thu, 17 Sep 2020 08:33:03 CDT
Understanding Price Discovery Is The Key To Improving It Says Texas A&M Economist David Anderson Wed, 16 Sep 2020 08:26:54 CDT
No FMD In United States Since 1929 But Iowa State's Dr. Danelle Bickett-Weddle Says We Must Be Prepared For An Outbreak Tue, 15 Sep 2020 09:45:10 CDT
CARES Act Stimulus Payments Could Be Helping Increase Beef Demand Says KSU's Dr. Glynn Tonsor Mon, 14 Sep 2020 08:16:00 CDT
Uncertainty Is How KSU Extension Livestock Economist Dr. Glynn Tonsor Describes Current Cattle Market Fri, 11 Sep 2020 08:48:49 CDT
The World Population Still Eating Beef Despite Pandemic Says USMEF's Dan Halstrom Thu, 10 Sep 2020 08:27:19 CDT
Demand Remains Strong For U.S. Beef Exports, Says Dan Halstrom, USMEF President And CEO Wed, 09 Sep 2020 08:08:52 CDT
Beef Producers Should Have A Biosecurity Plan, Says OSU Veterinarian Dr. Rosslyn Biggs Tue, 08 Sep 2020 07:45:25 CDT
OSU Extension Livestock Economist Dr. Derrell Peel Says Conditions Exist For Good Profit Margins For Grazing Stocker Calves On Wheat Pasture This Year Fri, 04 Sep 2020 08:23:52 CDT
Meat Packing Industry Needs To Add About 6,000 Head To Daily Capacity, Says Dustin Aherin, Rabo AgriFinance Thu, 03 Sep 2020 08:42:00 CDT
Beef Exports Are Valuable For U.S. Producers Says CattleFax's Randy Blach Wed, 02 Sep 2020 09:27:50 CDT
CattleFax CEO Randy Blach Says Beef Demand Has Dramatically Improved In The Past 20 Years Mon, 31 Aug 2020 08:20:48 CDT
Great American Outdoor Act a Federal Land Grab, Says Kaitlyn Glover With NCBA And PLC Fri, 28 Aug 2020 08:49:21 CDT
Great American Outdoor Act a Federal Land Grab, Says Kaitlyn Glover With NCBA And PLC Fri, 28 Aug 2020 08:35:50 CDT
Elanco's Sara Place Says Converting To a Vegan Diet Would Not Improve The Environment Thu, 27 Aug 2020 08:17:10 CDT
Cattle Are Part of The Solution, Not Part of The Problem, Explains Dr. Sara Place, Elanco Animal Health Wed, 26 Aug 2020 08:03:54 CDT
Dan Halstrom, USMEF, Expects U.S. Beef Exports To Increase in Late 2020 Tue, 25 Aug 2020 07:41:48 CDT
Latest Cattle On Feed Report Shows Higher Than Expected Placements And OSU's Dr. Peel Says This Could Mean We've Worked Through The Cattle Backlog Mon, 24 Aug 2020 07:57:48 CDT
California Judge Surprisingly Rules In Favor Of Trump Water Rule, Thus Supporting Agriculture, Says NCBA's Scott Yager Fri, 21 Aug 2020 08:46:48 CDT
Trump Water Rule Now Being Contested In Court, Forcing NCBA To Defend Government Rule, Says NCBA's Scott Yager Thu, 20 Aug 2020 09:09:54 CDT
LMIC's Katelyn McCullock Projects Better Returns For Cattle Feeders Later This Year Wed, 19 Aug 2020 08:22:39 CDT
Input From Cattle Producers Critical For Meeting Goals of The U.S. Roundtable For Sustainable Beef Tue, 18 Aug 2020 08:58:48 CDT
The U.S. Roundtable for Sustainable Beef Provides a Framework For Producers To Be Profitable For The Long-Term Says Past Chair Ben Weinheimer Mon, 17 Aug 2020 09:45:11 CDT
NCBA's Kent Bacus Explains Why We Need To Import Small Amounts Of Beef Fri, 14 Aug 2020 11:36:29 CDT
For US Cattle Producers- China Still Offers Huge Potential- So Says NCBA's Kent Bacus Thu, 13 Aug 2020 14:23:21 CDT
NCBA's Kent Bacus Optimistic 2020 Will Be A Good Year For U.S. Beef Exports Wed, 12 Aug 2020 09:19:20 CDT
OUS's Dr. Derrell Peel Prefers The Word "Stability" Instead of "Normal" When Referencing The Climb To Better Cattle Prices Tue, 11 Aug 2020 08:12:20 CDT
NCBA's Danielle Beck Encourages Producers to Submit Comments on Dietary Guidelines Before Aug. 13 Deadline Mon, 10 Aug 2020 08:48:20 CDT
Ag Exemption For ELD Rule Expires Sept. 30 And NCBA's Allison Rivera Explains How They Are Working To Extend Exemption Fri, 07 Aug 2020 09:11:21 CDT
New 5-Year Long-Range Plan To Help Cattle Producers Unveiled at NCBA Summer Business Meeting Thu, 06 Aug 2020 08:44:20 CDT
USDA Undersecretary Greg Ibach Continues Push For Animal Identification Program And Additonal USDA Regulatory Powers To Help Cattle Industry Wed, 05 Aug 2020 11:45:23 CDT
TCFA's Ross Wilson Says More Robust Price Discovery Does Not Guarantee Higher Prices Tue, 04 Aug 2020 09:19:31 CDT
TCFA's Ross Wilson Believes Voluntary Market Driven Approach To Increasing Live Cattle Trade Can Be Achieved By Year End Mon, 03 Aug 2020 09:05:23 CDT
Cattle Producers Happy To Meet In Person During This Week's NCBA Summer Conference Says NCBA's Colin Woodall Fri, 31 Jul 2020 09:09:20 CDT
