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Abstract

This study examines the dynamics of the relationship between per pound prices for feeder cattle at different sale weights. The feeder cattle “price slide” relationship, as it is commonly known, is influenced by fluctuations in the output price for slaughter cattle and the input price of feed corn. I empirically test predictions about price slide dynamics that are derived from a two-input derived demand model for slaughter cattle. Empirical analysis is conducted using an extensive dataset of feeder cattle transactions.

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