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Deliveries on the CME Live Cattle Contract: An Economic Assessment
Author(s) -
Hudson Michael A.,
Hieronymus Thomas A.,
Koontz Stephen R.
Publication year - 1988
Publication title -
applied economic perspectives and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.4
H-Index - 49
eISSN - 2040-5804
pISSN - 2040-5790
DOI - 10.1093/aepp/10.2.155
Subject(s) - yield (engineering) , certificate , business , quality (philosophy) , agricultural economics , economics , philosophy , materials science , epistemology , algorithm , computer science , metallurgy
Deliveries on the CME live cattle contract respond to the delivery month basis, discounts for yield grade 4 carcasses, and limited seasonal influences. Modification of the contract to tighten quality standards resulted in a decline in the response of deliveries to the yield grade 4 carcass discounts. The certificate delivery system appears to have had no significant effect on the total number of deliveries. Analysis of spatial combinations of delivery points suggests that markets east of the Mississippi River respond to different factors than the western markets.