1 Cattle Marketing: Cash Market BasicsDerrell S. Peel Extension Livestock Marketing Specialist and Breedlove Professor of Agribusiness Oklahoma State University

2 Marketing Tactics Shrink and weighing conditions Price slidesMarketing channels

3 Price Slide or Rollback OK combined auction, 2000-2016Weight (lbs.) Price ($/cwt.) Change Slide (Cents/lb.) % Slide 375 163.78 425 155.26 -8.52 17.04 10.4 475 147.83 -7.43 14.86 9.6 525 141.32 -6.51 13.02 8.8 575 135.19 -6.13 12.26 8.6 625 130.51 -4.68 9.36 6.9 675 126.93 -3.58 7.16 5.4 725 124.19 -2.74 5.48 4.3 775 121.15 -3.04 6.08 4.9 825 118.38 -2.77 5.54 4.6 875 115.36 -3.02 6.04 5.1 925 112.50 -2.86 5.72 5.0

4 Market Channels Choice of marketing channel affects information and negotiation requirements Local/regional auctions Video auctions Direct sale

5 Cattle Marketing: Tactical ConsiderationsEstablish Price Risk management Transfer ownership Legal (determine buyer) Physical (shipping) Marketing Alternative Establish Price Establish Buyer Transfer Ownership Cash Auction Now Video Auction Later Forward Contract Futures Hedge

6 Marketing Cull Cows Improve profits from cull cowsUtilize excess forage/feed resources

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8 DEPARTMENT OF AGRICULTURAL ECONOMICS