![]() Basis is a fairly simple concept, but its importance and impact should not be underestimated. This study focuses on basis calculations across the five locations for which data was collected and formulated. One of the most effective ways to predict local cattle prices is to use historical market trends averaged across a period of time. This study is not intended to be an exhaustive analysis of markets across the state, as many substantial marketing channels are excluded, but is designed to create a framework through which risk management analysis can be performed at the local level as markets continue to evolve. Animal type is determined by weight in 100-pound categories ranging from 300-399 lbs to 700-799 lbs steer or heifer medium and large frame size with #1 or #2 thickness. These data are from only “in-barn” sales, meaning those in which a producer could drop their animals off at the market and buyers would purchase animals either in the ring or after having observed them in the holding pens. Price data were collected from the Virginia Department of Agriculture and Consumer Services Market News Service and tabulated into monthly price averages broken down by animal type for each location. ![]() While this is not a comprehensive list of all cattle markets in Virginia and cattle-producing regions of the state, these locations were selected based on the historical data available for weekly state-graded feeder cattle sales across the 2016-2021 time period of evaluation. In order to create a framework for this type of evaluation, a database of historical cash prices, futures prices, and resulting basis information has been assembled from the following weekly state-graded in-barn feeder cattle auctions: ![]() ![]() This study aims to provide an overview of trends and factors that should be considered when evaluating alternative markets to help set price expectations and inform marketing and price risk management decisions. ![]()
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