Transportation and Quality Adjusted Basis: Does the Law of One Price Hold for Feeder Cattle?

Abstract

Feeder calf prices are examined from a national video auction sales from 2004-2006. Many cattle, lot, and market characteristics significantly impact feeder cattle basis. Auction prices were adjusted for quality differences and for transportation costs and compared across regions. Basis was significantly different after the adjustment from region to region.feeder cattle prices, law of one price, video auctions, Demand and Price Analysis, Farm Management, Livestock Production/Industries, Marketing,