Supply and demand factors were at play and competition levels among packers that process cattle for slaughter did not appear to affect cattle prices in 2015 is the conclusion of a report from the Government Accountability Office (GAO) on price downturns that happened that year.
GAO pointed out that the Commodity Futures Trading Commission (CFTC) also found no evidence of trading irregularities in cattle futures in 2015. "However, to better align futures contracts with the actual fed cattle market, CFTC reviewed changes to contract terms and will continue to monitor those changes," GAO said.
In analyzing USDA data on the cattle market, GAO said, "we found that while less competition among packers did not appear to result in lower national cattle prices from 2013 through 2015 on a national level, it did account for variations in prices in different parts of the country." GAO had been asked to determine, among other things, if the lack of packer competition led to the price decline.