Fact Sheet Written by
Clement E. Ward, Oklahoma State University
Ted C. Schroeder, Kansas State University
And Provided by
Oklahoma State University
Low cattle prices are related to price determination factors. Low prices result from supplies that are large relative to current beef demand conditions. Variation in week-to-week or daily prices across pens of cattle, both above and below the market price level, result from many factors directly affecting price discovery. Captive supplies, market information, and meatpacking concentration could be contributing causes. Price discovery is frequently confused with price determination. These are two related, but different, concepts that need to be understood when discussing pricing issues. This fact sheet distinguishes between both concepts, identifies how they are interrelated, and provides an indication when price discovery concerns may increase.
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