CASH FORWARD CONTRACTING VERSUS HEDGING OF FED CATTLE, AND THE IMPACT OF CASH CONTRACTING ON CASH PRICES
| dc.creator | Elam, Emmett W. | |
| dc.date | 2017-04-01T15:08:01Z | |
| dc.date.accessioned | 2026-07-09T04:10:19Z | |
| dc.description | This research examines cash forward contracting of fed cattle. For an individual feeder, a cash contract eliminates basis risk (as compared to a futures hedge). However, the disadvantage is that the contract price is estimated to be lower than the futures hedge price by $.28 - $.59/ cwt for steers and $.86 - $1.64.cwt for heifers. From the industry perspective, contracting appears to have a negative impact on cash prices. An increase of 1,000 head in U.S. monthly contract cattle shipments is associated with a $.003-$.009/cwt decrease in the U.S. average cash price. The negative impact of cash contracting varies by state. | |
| dc.identifier | doi:10.22004/ag.econ.30729 | |
| dc.identifier | https://ageconsearch.umn.edu/record/30729/files/17010205.pdf | |
| dc.identifier | http://ageconsearch.umn.edu/record/30729 | |
| dc.identifier.uri | http://hdl.handle.net/123456789/545898 | |
| dc.language | eng | |
| dc.publisher | ||
| dc.source | http://ageconsearch.umn.edu/record/30729 | |
| dc.title | CASH FORWARD CONTRACTING VERSUS HEDGING OF FED CATTLE, AND THE IMPACT OF CASH CONTRACTING ON CASH PRICES | |
| dc.type | Text |