Understanding AgStockTrade.com...

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Matching Service (QMS), is a public domain and is viewable by anyone. Although viewable by anyone, a user name and a password are required before an offer to buy or sell is placed on the site. If you are a unitholder, you have already been assigned a user name and password. If you are a unitholder or an associate who has already registered for a user name and password and do not recall what they are, please call our office and we will assist you in getting that information. Associates who have not registered for a user name and password must complete a Logon Request, which can be found on USPB’s website at http://www.uspremiumbeef.com/DocumentItem.aspx?ID=61. All requests are presented to the USPB Board of Directors for approval.

Unitholders and associates with approved user names and passwords can then access the AgStockTrade.com website. All offers to buy or sell are anonymous until the transfer paperwork is distributed for signature, after a match occurs.

The United States government has established regulations that govern the way in which QMS systems operate. Those regulations create several time requirements: An offer to sell must wait a mandatory 15 days prior to being eligible to be matched with an offer to buy. A transaction cannot close prior to 45 days after the offer to sell is posted. An offer to sell can only remain on the QMS website for 120 days at which time it will be deleted. However, the offer can be reposted to the QMS website after being off the site for 60 days.

During the 120 day period, sellers have the option to change the asking price or adjust the desired quantity to sell. However, any changes to the initial sell offer (and any subsequent changes to the offer) will restart the 15 day wait period before a match can occur. Although the 15 day wait period restarts, the 120 day posting period remains static. Buyers are not subject to similar time constraints and have the option to change bids on a real time basis.

Last year, AgStockTrade added two features to make the system even more user-friendly. First, a feature was added that allows for extended bidding. With this new feature, if one or more bids that would create a match are entered at any point between 4:58 and 5:00 p.m. CST, a new two minute bidding window automatically opens. The new bidding window remains open until no further bids are placed within the extended window. The second new feature allows those placing buy offers to indicate a maximum bid. This feature allows the system to automatically increase the bid of a potential buyer anytime someone is bidding against him until his maximum bid is met.

For more information about the electronic trading service, go to USPB’s website at www.uspremiumbeef.com.♦

BENCHMARK PERFORMANCE DATA TABLE

Base Grid Cattle Harvested in KS Plants 09/01/13 to 09/28/13

(Numbers
in
Percent)

Base Grid

All

Top 25%

Yield

64.55

65.48

Prime

2.22

4.47

CH & PR

71.47

81.81

CAB

24.82

35.00

BCP

17.42

20.70

Ungraded

1.73

1.03

Hard Bone

0.45

0.19

YG1

10.38

8.26

YG2

35.77

34.30

YG3

40.22

42.62

YG4

12.36

13.55

YG5

1.27

1.27

Light Weight

0.23

0.12

Heavy Weight

1.27

1.05

Average Grid Premiums/Discounts ($/Head)

Quality Grade

$29.91

$49.57

Yield Benefit

$28.68

$51.70

Yield Grade

$2.15

$3.02

Out Weight

$2.03

$1.61

Natural

$3.20

$6.79

Total Premium

$57.61

$103.43