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Livestock Mandatory Price reporting, enacted to increase market transparency, has been in place for more than 20 years. However, immense structural change in cattle and beef markets has challenged market information over that time. Large variation present in cattle transaction prices, especially those in the Formula purchases category, on any given day has made traditionally United States Department of Agriculture (USDA)‐reported weighted‐average prices less meaningful. Using nearly 6 years of The Livestock Mandatory Reporting Act of 1999 transactions data from USDA Agricultural Marketing Service (USDA AMS), we demonstrate use of hedonic modeling to facilitate price reporting. While the models show promise to provide useful information, they reveal substantial weaknesses associated with current transaction information collected by USDA from packers. We offer suggestions for improved data collection which would make hedonic modeling of transactions prices a more valuable tool to increase usefulness of reported market prices. [ABSTRACT FROM AUTHOR]

The United States Department of Agriculture Agricultural Marketing Service (USDA AMS) began publishing formula base price information in August 2021. Considerable variation in the types of cattle priced via formula has raised questions about the level of base price transparency that can be gleaned from formula base price reports. This study employs 6 years of transactions to estimate hedonic models assessing the capability of existing data to describe variation in formula base prices. Results suggest factors beyond those reported to USDA AMS by packers influence base prices. We offer suggestions for improved data collection to make hedonic modeling of base prices more effective for reporting market information. [ABSTRACT FROM AUTHOR]

U.S. live cattle markets have experienced dramatic shifts in marketing methods over the past two decades, changing the way live cattle prices are discovered. We identify relationships between prices of the five major live cattle marketing regions using Granger causality and directed graph analysis. The two approaches complement each other and reveal that interweek and intraweek price discovery roles for given markets differ. Evidence indicates that Colorado, though a minor market in terms of relative volume, has become an important source of interweek price information to other markets. [ABSTRACT FROM AUTHOR]