FEEDER CATTLE PRICE DIFFERENTIALS IN ARIZONA AUCTION MARKETS

This paper presents the results of an empirical study of price differentials for feeder cattle in Arizona auction markets. Emphasis is placed upon the estimation of price/weight relationships for steers and heifers. Estimation of a short-run feeder cattle price differential model resulted in an equation with a good empirical fit. The model also is in agreement with theoretical expectations. It is concluded that the model presented in the paper could be maintained and updated periodically to provide a useful supplement to market price information services commonly used by cattle producers