| A dynamic model is used to estimate quarterly price differences between steers and heifers in the feeder, slaughter, and carcass markets. For cattle within the same weight and grade range, their price differences are hypothesized to be influenced by seasonal, economic, and partly reflecting time changes in evaluation of steer and heifer quality in the live cattle and dressed meat trades. Stochastic factors are less prevalent at the feeder level, although risk of placing pregnant heifers in feedlots and weather are important. Steer and heifer inventories, slaughter prices, cost of gain, and margins explained most of the variation in feeder steer and heifer price differences. |
