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
Today's Herd Bull Vastly Different Than 25 Years Ago, Says Jarold Callahan, Express Ranches Mon, 01 Mar 2021 08:42:59 CST
Cattle Market Forecast Calls For Strong Prices Ahead Says Kevin Good With CattleFax Fri, 26 Feb 2021 08:51:10 CST
New EPA Administration Water Officials Appear Willing to Work With Agriculture Says NCBA's Scott Yager Thu, 25 Feb 2021 07:41:53 CST
Help is on The Way For Cattle Producers Impacted by Brutal Cold Weather And Covid-19 Says NCBA's Ethan Lane Wed, 24 Feb 2021 08:18:25 CST
Data And Information Should Drive Cattle Market Transparency, Not Emotion, Says KSU Economist Dr. Glynn Tonsor Tue, 23 Feb 2021 08:12:31 CST
Latest Cattle on Feed Report Shows There Are Plenty of Cattle in The System, Says OSU's Dr. Peel Mon, 22 Feb 2021 08:15:22 CST
Everyone Agrees, Including Oklahoma Legislature, There Will Be a Cattlemen's Congress in 2022 Fri, 19 Feb 2021 08:53:52 CST
BQA Program Gives Consumers Confidence in Beef Producers, Says Idaho Rancher And Former CBB Chair Kim Brackett Thu, 18 Feb 2021 10:33:39 CST
Large Genetic Toolbox Available For Angus Breeders Says AGI's Joel Cowley Wed, 17 Feb 2021 08:07:00 CST
KSU Veterinarian Offers Advice on Keeping Newborn Calves Alive During Brutal Cold Tue, 16 Feb 2021 10:08:08 CST
Latest Technology on Display at Express Ranches Spring Bull Sale March 5th Mon, 15 Feb 2021 09:35:08 CST
When Brutal Cold Hits, Cows Need Extra Energy And Attention, Says KSU Extension Beef Cow Specialist Justin Waggoner Fri, 12 Feb 2021 08:18:54 CST
Tight Corn Supplies Equals Higher Corn Prices And Raises Cost of Gain For Feedlots, Says OSU's Derrell Peel Thu, 11 Feb 2021 08:37:08 CST
Good Nutrition Critical for Keeping Cattle Healthy in Brutal Cold Weather Says OSU Veterinarian Dr. Rosslyn Biggs Wed, 10 Feb 2021 08:32:21 CST
OSU Veterinarian Dr. Rosslyn Biggs Offers Advice on Preparing Cattle For Bitter Cold Temperatures Tue, 09 Feb 2021 08:41:30 CST
Tight Beef Supply Indicated in Latest USDA Cattle Inventory Report Says Katelyn McCullock, LMIC Mon, 08 Feb 2021 08:30:47 CST
Vilsack Makes it Clear During His Senate Ag Committee Confirmation Hearing he Wants More Cattle Market Transparency Fri, 05 Feb 2021 08:56:06 CST
Cattle Play a Major Role in Keeping us Healthy Says Dr. Sara Place Thu, 04 Feb 2021 08:15:12 CST
Widespread Industry Support Helped Get The Livestock Dealers Statutory Trust Law Passed Says LMA's Chelsea Good Wed, 03 Feb 2021 09:14:13 CST
New Law Will Help Livestock Sellers Recover Funds When a Dealer's Check Bounces Says LMA's Chelsea Good Tue, 02 Feb 2021 08:20:23 CST
January Cattle Inventory Report Shows Stability Depsite Pandemic says OSU's Dr. Derrell Peel Mon, 01 Feb 2021 09:00:43 CST
Congressman Frank Lucas Determined to Resolve Cattle Market Manipulation Issue Fri, 29 Jan 2021 08:30:44 CST
RAMP-UP Act Would Benefit Both Livestock Producers And Consumers, Says Cong. Frank Lucas Thu, 28 Jan 2021 08:29:08 CST
U.S. Beef Exports Expected to Increase 10 percent in 2021 Due to Growing E-Commerce Trade Says Dan Halstrom, USMEF Wed, 27 Jan 2021 08:20:12 CST
Latest Cattle on Feed Report Shows Higher Than Expected Placements Tue, 26 Jan 2021 08:25:41 CST
Helping Commercial Cattle Producers Capture Value of Angus Genetics is Troy Marshall's Focus With the American Angus Association Mon, 25 Jan 2021 08:38:48 CST
Oklahoma Cattle Producers Cautiously Optimistic Says OCA's Michael Kelsey Fri, 22 Jan 2021 08:34:02 CST
MOU Between USDA and FDA on Gene Editing is Good Business Says NCBA's Ethan Lane Thu, 21 Jan 2021 08:24:49 CST
January Cattle Inventory Report Expected to Show a Stable U.S. Cow Herd Says OSU's Derrell Peel Wed, 20 Jan 2021 08:33:42 CST
Simmental Cattle Breeders Expect a Great Year After Their Success in 2020 Tue, 19 Jan 2021 08:05:42 CST
American Hereford Association Executive Jack Ward Proud of Breed's Genetic Improvements Mon, 18 Jan 2021 08:17:21 CST
Gene Editing Technology Could Soon Be Common Practice For Beef Cattle Industry Fri, 15 Jan 2021 08:08:55 CST
Seedstock Industry Undergone Many Changes in Last 20 Years, Says Jack Ward, American Hereford Association Thu, 14 Jan 2021 08:06:15 CST
2020 Taught Beef Producers a Valuable Lesson, Says American Angus Assoc. CEO Mark McCully Wed, 13 Jan 2021 10:42:47 CST
Angus Breeders Survived 2020 By Being Flexible And Quickly Adapting, Says CEO Mark McCully Tue, 12 Jan 2021 08:02:38 CST
