The research reported here identified factors explaining variability in weekly fed cattle Livestock Protection Insurance (LRP) basis for five cattle feeding regions in the United States. A Seemingly Unrelated Regressions (SUR) system of five futures and five LRP basis equations was estimated using weekly data from 1995 to 2004. Results indicated that market fundamentals, including the Choice-to-Select spread, slaughter level, corn price, and cattle imports, were significant determinants of both futures and LRP basis variability. Results have implications for cattle feeders and Extension educators who forecast LRP basis for hedging purposes.

Creative Commons License

Creative Commons Attribution-Noncommercial 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-Share Alike 4.0 License.



To view the content in your browser, please download Adobe Reader or, alternately,
you may Download the file to your hard drive.

NOTE: The latest versions of Adobe Reader do not support viewing PDF files within Firefox on Mac OS and if you are using a modern (Intel) Mac, there is no official plugin for viewing PDF files within the browser window.