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Factors Affecting Feeder Cattle Prices in the Southeast

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  • Burdine, Kenny
  • Maynard, Leigh J.
  • Halich, Greg

Abstract

This work examines feeder cattle pricing factors from internet auctions and preconditioned feeder calf sales. In addition to examining traditional pricing factors, factors were also examined relating to the marketing conditions and characteristics of the feeder cattle sold. A negative relationship was found to exist between corn and feeder cattle price, with some evidence that the magnitude may be smaller than in previous work. Value-added premiums were moderate, roughly $11 per head for age and source verification and $17 per head for certified natural. Evidence was also found that market conditions may have shifted such that the incentive to underestimate weight in video auctions may no longer exist.

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File URL: http://purl.umn.edu/142976
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Bibliographic Info

Paper provided by Southern Agricultural Economics Association in its series 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida with number 142976.

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Handle: RePEc:ags:saea13:142976

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Web page: http://www.saea.org/
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Related research

Keywords: hedonic model; feeder cattle pricing; extension; Demand and Price Analysis; Livestock Production/Industries; Production Economics; Teaching/Communication/Extension/Profession; Q;

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  1. Bulut, Harun & Lawrence, John D., 2007. "The Value of Third-Party Certification of Preconditioning Claims at Iowa Feeder Cattle Auctions," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 39(03), December.
  2. 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(03), December.
  3. repec:ags:jrapmc:122309 is not listed on IDEAS
  4. Maynard, Leigh J. & Meyer, A. Lee & Burdine, Kenneth H., 2004. "Understanding the Market for Holstein Steers," Staff Papers 31978, University of Kentucky, Department of Agricultural Economics.
  5. Donnell, Jeri & Ward, Clement E., 2008. "Cost and Benefit Analysis of a Preconditioning Feeder Calf Program," 2008 Annual Meeting, June 23-24, 2008, Big Sky, Montana 42303, Western Agricultural Economics Association.
  6. repec:ags:jrapmc:122317 is not listed on IDEAS
  7. Parcell, Joseph L. & Schroeder, Ted C. & Dhuyvetter, Kevin C., 2000. "Factors Affecting Live Cattle Basis," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 32(03), December.
  8. Zimmerman, Lance C. & Schroeder, Ted C. & Dhuyvetter, Kevin C. & Olson, K.C. & Stokka, Gerald L. & Seeger, Jon T. & Grotelueschen, Dale M., 2012. "The Effect of Value-Added Management on Calf Prices at Superior Livestock Auction Video Markets," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 37(1), April.
  9. Williams, Galen S. & Raper, Kellie Curry & DeVuyst, Eric A. & Peel, Derrell S. & McKinney, Doug, 2012. "Determinants of Price Differentials in Oklahoma Value-Added Feeder Cattle Auctions," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 37(1), April.
  10. Brorsen, B. Wade & Coulibaly, Nouhoun & Richter, Francisca G.-C. & Bailey, DeeVon, 2001. "Feeder Cattle Price Slides," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(01), July.
  11. 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.
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