CHANGES IN "EARLY WEEK" LIVESTOCK MARKETING
Research Progress Report 46
February 1963
R. E. Schneidau, Agricultural Economics Department
The apparent persistence of price and receipt patterns throughout the week at terminal livestock markets, both in Indiana and elsewhere, prompted this analysis. There has been, in the past, a persistent uneven distribution in livestock prices and receipts throughout the week creating marketing inefficiencies.
These patterns caused excess facilities to be constructed and maintained to facilitate heavy runs, which were practically vacant on days of light receipts. In addition, extra personnel were employed to handle peak runs. As a result, stockyard companies and commission firms could not efficiently utilize their labor and facilities. Livestock truckers experienced similar problems.
An analysis of the price and receipt patterns at the Indianapolis and Evansville terminal livestock markets for the 1952-1955 period indicated the following: 1/
"Farmers received significantly higher prices on Monday than on other days of the week for certain classes of both cattle and hogs. Monday was also the day of heaviest marketings during the four-year period studied.
"Cattle receipts at both the Indianapolis and Evansville markets were largest, on the average, on Monday, and declined throughout the rest of the week, reaching
the smallest average volume on Friday. The same general pattern existed for sheep at Indianapolis and for hogs at Evansville. On the other hand, hog receipts at Indianapolis averaged largest on Monday and Thursday, and smallest on Wednesday.
"At both markets, Monday prices for 200-220 pound hogs were higher, on the average, than prices on other days of the week. Prices for other weights tended to be slightly higher on Mondays than on other days.
"In general, Monday was also the best day to market cattle at Indianapolis if price was the major consideration. Prices of 900-1,100 pound choice steers, 900-1,100 pound good steers, 600-800 pound choice heifers, and all weights of commercial cows, averaged significantly higher on Monday than on other days.
"Evansville prices for 600-800 pound choice heifers were highest, on the average, on Monday and Tuesday. Prices paid for other classes and weights included in the study were not significantly higher on any one day."
Changes in these patterns would have significant effects on these agencies. Increased concentration of receipts early in the week would aggravate the situation. An even distribution of receipts throughout the week would promote the fuller and more ef-
1/ "Is There A Best Market Day?", Schneidau, R. E., V. W. PhersonandC. B. Cox, Purdue University, Agricultural Experiment Station, R.B. 709, November 1960.
PURDUE UNIVERSITY • Agricultural Experiment Station • Lafayette, Indiana