Forecasting feeder cattle basis has long been difficult because of the myriad factors that influence basis, including input and output prices and lot characteristics. This research draws upon knowledge of the various factors that influence cash feeder cattle prices to develop hedonic feeder...

Optimal hedge ratios are estimated for various weights of feeder cattle in four cash markets based on CME data from 1992 to 1999. Three-month uniform hedges are simulated for every weight, contract, and cash market combination. Hedging effectiveness is compared empirically across locations to...

This paper examines returns from holding 30- and 90-day call and put positions, and the forecasting performance of implied volatility in the live and feeder cattle options markets. Implied volatility is an upwardly biased and inefficient predictor of realized volatility, with bias most...