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Keywords

Cattlemen's Day, 2000; Kansas Agricultural Experiment Station contribution; no. 00-287-S; Report of progress (Kansas State University. Agricultural Experiment Station and Cooperative Extension Service); 850; Beef; Price slides; Feeder cattle prices; Price determinants

Abstract

Several important determinants need to be considered when analyzing price slides (priceweight relationships) for feeder cattle. The two most economically important determinants of price-weight slides are expected fed-cattle price and corn price. Price-weight slides increase notably when corn prices decline (i.e., the premium for light-weight calves increases as feed prices decrease). Likewise, when expected fed-cattle prices increase, price-weight slides increase. Knowing this information can help producers who forward contract feeder cattle, backgrounders making decisions regarding feeding calves to various weights, and producers making feeder cattle purchase decisions.

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