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Dynamics of Feeder Cattle Basis and Price Slides

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  • Swanser, Kole

Abstract

This study examines the dynamics of the relationship between per pound prices for feeder cattle at different sale weights. The feeder cattle “price slide” relationship, as it is commonly known, is influenced by fluctuations in the output price for slaughter cattle and the input price of feed corn. I empirically test predictions about price slide dynamics that are derived from a two-input derived demand model for slaughter cattle. Empirical analysis is conducted using an extensive dataset of feeder cattle transactions.

Suggested Citation

  • Swanser, Kole, 2013. "Dynamics of Feeder Cattle Basis and Price Slides," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150249, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea13:150249
    DOI: 10.22004/ag.econ.150249
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    References listed on IDEAS

    as
    1. Anderson, John D. & Trapp, James N., 2000. "The Dynamics Of Feeder Cattle Market Responses To Corn Price Change," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 32(3), pages 1-13, December.
    2. Dhuyvetter, Kevin C. & Swanser, Kole & Kastens, Terry L. & Mintert, James R. & Crosby, Brett, 2008. "Improving Feeder Cattle Basis Forecasts," 2008 Annual Meeting, June 23-24, 2008, Big Sky, Montana 42302, Western Agricultural Economics Association.
    3. Kevin C. Dhuyvetter & Ted C. Schroeder, 2000. "Price-Weight Relationships for Feeder Cattle," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 48(3), pages 299-310, November.
    4. Schroeder, Ted C. & Mintert, James R. & Brazle, Frank & Grunewald, Orlen C., 1988. "Factors Affecting Feeder Cattle Price Differentials," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 13(1), pages 1-11, July.
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