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Feeder Cattle Basis in the Western United States Over the Last Decade

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  • Berg, Nikolas L.
  • Thayer, Anastasia W.
  • Fischer, Matthew
  • Feuz, Dillon

Abstract

Since 2012, Western cattle herds have undergone cycles of contraction and expansion, influenced by severe droughts, a global pandemic, and regional variations in cattle quality, all of which have contributed to diverse local market conditions. We examine feeder steer and heifer basis from 2012-2023 in nine Western states to identify market trends and patterns. We find that some historic patterns persist, but also new patterns based on season, region, weight class, and gender exist, which could be used to improve ranch-level decision-making and marketing.

Suggested Citation

  • Berg, Nikolas L. & Thayer, Anastasia W. & Fischer, Matthew & Feuz, Dillon, 2024. "Feeder Cattle Basis in the Western United States Over the Last Decade," Western Economics Forum, Western Agricultural Economics Association, vol. 22(1), September.
    • Handle: RePEc:ags:weecfo:349291
    DOI: 10.22004/ag.econ.349291
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    References listed on IDEAS

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    1. Thayer, Anastasia W. & Benavidez, Justin R. & Anderson, David P., 2024. "Exploring the Impact of Fed Cattle Grade on Transaction Type," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2024, January.
    2. Shroeder, Ted C. & Mintert, James R., 1988. "Hedging Feeder Steers And Heifers In The Cash-Settled Feeder Cattle Futures Market," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 13(2), pages 1-11, December.
    3. Yunhan Li & J. Scott Shonkwiler, 2021. "Assessing the Role of Ordering in Sequential English Auctions – Evidence from the Online Western Video Market Auction," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(1), pages 90-105, January.
    4. DeeVon Bailey & Monte C. Peterson & B. Wade Brorsen, 1991. "A Comparison of Video Cattle Auction and Regional Market Prices," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(2), pages 465-475.
    5. 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.
    6. Tonsor, Glynn T. & Dhuyvetter, Kevin C. & Mintert, James R., 2004. "Improving Cattle Basis Forecasting," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 29(2), pages 1-14, August.
    7. Seamon, Fred & Sullivan, Jim & Umubyey, Joselyne, 2019. "Regional and Seasonal Differences in Feeder Cattle Basis," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2019.
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