Agricultural News
Superior Livestock's Danny Jones Continues FedCattleExchange.com Discussion
Wed, 18 May 2016 22:45:35 CDT
We are less than a week away from the first FedCattleExchange.com internet sale set for next Wednesday, May 25. Superior Livestock Auction created the electronic auction format to help expand the cash market for fed cattle in order to establish a better basis for formula pricing.
Superior Livestock Auction President Danny Jones says the first few sales will be pretty straightforward with the hopes of expanding to more options for buyers and sellers in the future.
"In order for us to make this simple and to prove the concept that price discovery can work in the fed cattle arena, we are doing cash price for immediate delivery only to begin with," he says. "We do feel like that overtime this can be expanded beyond just immediate delivery and beyond just cash price to include future delivery, to include specialty programs, to include basis for a formula rather than just cash trade that gets reported into the plus or minus on formulas for futures."
While credentials are required to buy and sell cattle (go to the FedCattleExchange.com website for more information), Jones says there will be a "watch only" option for those interested in seeing how the auction works.
He says it will be different from what folks are used to when they watch a regular SLA sale.
"Don't expect what you've seen in a typical Superior Livestock video auction," he says. "There is no auctioneer; it's an electronic format that you can see the bids taking place and the cattle being sold."
Click on the LISTEN BAR below to hear more about how the new FedCattleExchange.com will work during the latest Beef Buzz.
The Beef Buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Network and is a regular audio feature found on this website as well. Click on the LISTEN BAR below for today's show and check out our archives for older Beef Buzz shows covering the gamut of the beef cattle industry today.
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