EL-5263: Livestock Basis
livestock basis information sheet

210550, 15; 222550, 85;
Email: mwaller@tamu.edu

Product Code: EL-5263

Free electronic download only. Knowledge of historical basis patterns can be useful when estimating expected sale or purchase prices at the conclusion of  a futures or options hedge, when evaluating a current cash market quote, and when forecasting cash prices. This publication explains how livestock basis is computed, outlines an approach to developing a history of local basis levels, and discusses how historical basis data can be used to forecast basis.  (4 pp., 1 table) By: Stan Bevers, Kevin C. Dhuyvetter, James R. Mintert, Ernest E. Davis