Analysis of Seasonality in Feeder Cattle Prices and Ending Basis
Title | Analysis of Seasonality in Feeder Cattle Prices and Ending Basis PDF eBook |
Author | Scott W. Stovall |
Publisher | |
Pages | 136 |
Release | 1987 |
Genre | Cattle |
ISBN |
An Econometric Model of Pacific Northwest Feeder Cattle Basis
Title | An Econometric Model of Pacific Northwest Feeder Cattle Basis PDF eBook |
Author | Cynthia Ann Vanderpool |
Publisher | |
Pages | 200 |
Release | 1981 |
Genre | Beef cattle |
ISBN |
Fluctuating feeder cattle prices have a direct affect on the revenue variability of feeder cattle producers. Hedging in the commodity futures market is a marketing strategy which can, if properly used, reduce the financial risk of feeder cattle producers. If the closing basis value is known when a hedge is placed, a price can be established for the feeder cattle in advance. This fact prompted research in determining the factors which affect nearby feeder cattle basis in the Pacific Northwest. This research is an attempt to identify factors which influence the feeder cattle basis through their influence on the prices which compose the basis -i.e., the cash and futures prices. The feeder cattle cash price has been established as a function of the factors affecting the profit of feedlot operations. Controversy exists on the factors which influence the futures price of livestock products; however, the use of technical indicators is well established in the literature. For the purposes of this research feeder cattle basis is developed as a function of the profit factors and a lag-trend indicator along with dummy variables which influence feeder cattle futures contracts over time. The profit factors include expected slaughter price, corn price, and interest rate values. These profit factors are expected to influence the cash price of feeder cattle. The lag-trend indicator is a calculated trend of the basis over the past two time periods and is expected to represent the analysis made by traders in both the futures and cash markets of past events or prices. This analysis by traders in the futures market will be similar to their use of technical indicators. In specifying the model, two methods of analyzing the expected affects of the profit factors on the basis are acknowledged. In this research, the profit factors are assumed to influence only the cash price. Therefore, the effect of the factors on basis is hypothesized by making assumptions about the price movement of the feeder cattle futures price. The analyses produce various hypotheses about the expected effects of the profit factors on basis. The empirical results produce evidence that the estimated equations explain a good proportion of the Pacific Northwest basis of feeder cattle for light and heavy weight categories. After a close analysis of the profit factors, corn price is concluded to have a positive influence on 500-600 pound feeder cattle basis and a negative influence on 700-800 pound feeder cattle basis. However, due to the inability of the methods to hypothesize the effect of slaughter price on basis and/or to hypothesize, with consistency, the correct signs of the estimated interest rate coefficient, conclusions are not made about their influences on the basis. Feeder cattle producers can apply the information produced in this research in making hedging decisions. However, a thorough knowledge and analysis of hedging theory and market conditions should be undertaken first. Since a predicted closing basis is needed by feeder cattle producers to establish a "locked-in" cash price, further research in developing a forecasting model of feeder cattle basis is warranted.
An Analysis of the Annual and Seasonal Movements of Beef Cattle Prices
Title | An Analysis of the Annual and Seasonal Movements of Beef Cattle Prices PDF eBook |
Author | Leo V. Blakley |
Publisher | |
Pages | 282 |
Release | 1947 |
Genre | |
ISBN |
Seasonality of the Cattle Market
Title | Seasonality of the Cattle Market PDF eBook |
Author | John T. Larsen |
Publisher | |
Pages | 38 |
Release | 1971 |
Genre | Cattle |
ISBN |
Beef Cattle Prices
Title | Beef Cattle Prices PDF eBook |
Author | James Sam Plaxico |
Publisher | |
Pages | 38 |
Release | 1957 |
Genre | Agriculture |
ISBN |
Forecasting the Futures Market Basis Patterns for Tennessee Feeder Cattle
Title | Forecasting the Futures Market Basis Patterns for Tennessee Feeder Cattle PDF eBook |
Author | Dan Lucien McLemore |
Publisher | |
Pages | 36 |
Release | 1990 |
Genre | Beef cattle |
ISBN |
Masters Theses in the Pure and Applied Sciences
Title | Masters Theses in the Pure and Applied Sciences PDF eBook |
Author | Wade H. Shafer |
Publisher | Springer Science & Business Media |
Pages | 411 |
Release | 2012-12-06 |
Genre | Science |
ISBN | 1461305993 |
Masters Theses in the Pure and Applied Sciences was first conceived, published, and disseminated by the Center for Information and Numerical Data Analysis and Synthesis (CINDAS) * at Purdue University in 1 957, starting its coverage of theses with the academic year 1955. Beginning with Volume 13, the printing and dissemination phases of the activity were transferred to University Microfilms/Xerox of Ann Arbor, Michigan, with the thought that such an arrangement would be more beneficial to the academic and general scientific and technical community. After five years of this joint undertaking we had concluded that it was in the interest of all con cerned if the printing and distribution of the volumes were handled by an interna tional publishing house to assure improved service and broader dissemination. Hence, starting with Volume 18, Masters Theses in the Pure and Applied Sciences has been disseminated on a worldwide basis by Plenum Publishing Cor poration of New York, and in the same year the coverage was broadened to include Canadian universities. All back issues can also be ordered from Plenum. We have reported in Volume 32 (thesis year 1987) a total of 12,483 theses titles from 22 Canadian and 176 United States universities. We are sure that this broader base for these titles reported will greatly enhance the value of this important annual reference work. While Volume 32 reports theses submitted in 1987, on occasion, certain univer sities do report theses submitted in previous years but not reported at the time.