Exploring the Impact of Fed Cattle Grade on Transaction Type

In this paper, we present price and transaction information of fed cattle marketings to explore if differences exist in the quality grade of cattle marketed under different transaction types. In particular, we explore regional differences in marketings for cash, formula, forward, grid, and negotiated grid transactions from 2012 to 2022. Analysis shows that despite an industry trend toward higher-quality grade animals, most lowquality grade cattle are marketed in Texas, Oklahoma, or New Mexico using nonnegotiated pricing methods.