HEDGING WHOLESALE BEEF CUTS

Abstract

Live cattle futures markets do not offer much opportunity for effective hedging of wholesale beef cuts. If a Choice-to-Select price spread futures contract were introduced this would enhance hedging effectiveness although likely not enough to encourage cross hedging. If a Choice boxed beef futures contract were introduced, hedging Choice wholesale beef cuts would be less risky and the addition of a Choice-to-Select price spread would enhance hedging effectiveness especially for Select wholesale beef cuts.Livestock Production/Industries, Marketing,