Factors Affecting Feeder Cattle Prices in the Southeast
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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.