IDEAS home Printed from https://ideas.repec.org/a/cup/jagaec/v54y2022i1p137-156_7.html
   My bibliography  Save this article

Feeder Cattle Basis Risk and Determinants

Author

Listed:
  • Bina, Justin D.
  • Schroeder, Ted C.
  • Tonsor, Glynn T.

Abstract

The feeder cattle futures contract has been criticized in recent years as not providing an effective hedging instrument. Following historically volatile cattle markets in 2014–2015, feeder cattle basis risk escalated, fueling futures contract concerns. This study assesses these concerns, utilizing weekly auction data from 32 feeder cattle markets from 1992 to 2021. Examined for the first known time, feeder cattle market variation had a statistically and economically significant influence on basis risk. Basis variation differed across regions and marketing periods. Feeder cattle basis risk was historically high in 2014–2015 but declined to levels similar to 2011 by 2018.

Suggested Citation

  • Bina, Justin D. & Schroeder, Ted C. & Tonsor, Glynn T., 2022. "Feeder Cattle Basis Risk and Determinants," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 54(1), pages 137-156, February.
    • Handle: RePEc:cup:jagaec:v:54:y:2022:i:1:p:137-156_7
    as

    Download full text from publisher

    File URL: https://www.cambridge.org/core/product/identifier/S1074070822000025/type/journal_article
    File Function: link to article abstract page
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cup:jagaec:v:54:y:2022:i:1:p:137-156_7. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kirk Stebbing (email available below). General contact details of provider: https://www.cambridge.org/aae .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.