The Dynamics of Feeder Cattle Market Responses to Corn Price Change

John Anderson and James N. Trapp

Journal of Agricultural and Applied Economics, 2000, vol. 32, issue 3, 493-505

Abstract: A feeder-calf price model is estimated which incorporates elements of break-even budget analysis, including estimates of placement weights, slaughter weights, ration cost, and feed-conversion rates. From this model, a corn price multiplier is calculated which quantifies the corn/feeder-calf price relationship. Because the multiplier includes information on cattle weight, feed conversion, and ration cost, it also provides insight into how feeding programs are altered in response to corn price changes. Changes in feeding programs which occur in response to corn price changes are illustrated with dynamic simulation based on weight, ration cost, and price models presented here.

Date: 2000
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Persistent link: https://EconPapers.repec.org/RePEc:cup:jagaec:v:32:y:2000:i:03:p:493-505_02

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