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Price-Weight Relationship for Feeder Cattle: An Updated Dairy-Beef Assessment

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  • Schulz, Lee L
  • Boetel, Brenda L.
  • Dhuyvetter, Kevin C.

Abstract

Feeder cattle prices depend on the weight of cattle and it is well recognized that prices per hundredweight (cwt) normally decrease as cattle weights increase. Not only do prices vary across cattle weights, but the magnitude of price differences depend on the weight of cattle. This price differential, more commonly known as a price slide, is a reflection of the costs to add weight to an animal (i.e., cost of gain). Because costs of gain ($/cwt) are generally lower than the price of cattle ($/cwt), lighter weight cattle have higher prices than heavier weight cattle and the price slide exists.

Suggested Citation

  • Schulz, Lee L & Boetel, Brenda L. & Dhuyvetter, Kevin C., 2018. "Price-Weight Relationship for Feeder Cattle: An Updated Dairy-Beef Assessment," ISU General Staff Papers 201812010800001709, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genstf:201812010800001709
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    Cited by:

    1. 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.
    2. McKendree, Melissa G. S. & Saitone, Tina L. & Schaefer, K Aleks, 2020. "Cattle Cycle Dynamics in a Modern Agricultural Market: Competition in Holstein Cattle Procurement," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304380, Agricultural and Applied Economics Association.
    3. Melissa G.S. McKendree & Tina L. Saitone & K. Aleks Schaefer, 2021. "Oligopsonistic Input Substitution in a Thin Market," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(4), pages 1414-1432, August.

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