Impacts from captive supplies on fed cattle transaction prices

Increased use of noncash-price procurement methods has concerned cattlemen for the past several years; This research estimated impacts of captive supp lies an transaction prices for fed cattle. Negative relationships were foun d between transaction prices and percentage deliveries from the inventory o f forward contracted and marketing agreement cattle. However, impacts from the absolute size of the total captive supply inventory were not significan t. Price differences were found among procurement methods with forward cont ract prices being much lower. On balance, captive supplies had small but of ten negative effects an fed cattle transaction prices.