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Transportation and Quality Adjusted Basis: Does the Law of One Price Hold for Feeder Cattle?

Author

Listed:
  • Feuz, Dillon M.
  • Harris, Chad
  • Bailey, DeeVon
  • Halverson, Gary

Abstract

Feeder calf prices are examined from a national video auction sales from 2004-2006. Many cattle, lot, and market characteristics significantly impact feeder cattle basis. Auction prices were adjusted for quality differences and for transportation costs and compared across regions. Basis was significantly different after the adjustment from region to region.

Suggested Citation

  • Feuz, Dillon M. & Harris, Chad & Bailey, DeeVon & Halverson, Gary, 2008. "Transportation and Quality Adjusted Basis: Does the Law of One Price Hold for Feeder Cattle?," 2008 Annual Meeting, June 23-24, 2008, Big Sky, Montana 42311, Western Agricultural Economics Association.
  • Handle: RePEc:ags:waeabi:42311
    DOI: 10.22004/ag.econ.42311
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    Cited by:

    1. Schulz, Lee L. & Schroeder, Ted C. & Ward, Clement E., 2011. "Trade-Related Policy and Canadian-U.S. Fed Cattle Transactions Basis," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 36(2), pages 1-13, August.
    2. Pudenz, Christopher C. & Schulz, Lee L., 2021. "Packer Procurement, Structural Change, and Moving Average Basis Forecasts: Lessons from the Fed Dairy Cattle Industry," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 46(3), September.
    3. Augustin, Jameson & Lopez, Jose A. & Leiva, Ervin, 2021. "1 A Case Study of Livestock Prices in Nicaragua," 2021 Annual Meeting (Virtual), February 6-9, 2021 338473, Southern Agricultural Economics Association.

    More about this item

    Keywords

    Demand and Price Analysis; Farm Management; Livestock Production/Industries; Marketing;
    All these keywords.

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