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The factors that influence feeder cattle basis were investigated using data from two Georgia teleauctions for the period from 1979 to 1994. A major goal was to use the models to forecast out-of-sample basis for individual lots of feeder cattle. These forecasts were compared to a forecast generated by using simple averages and a forecast using a market adjusted, 600-700 lb. steer average basis. Using root mean square error (RMSE) as the evaluation criterion, the results were inconclusive. For one of the teleauction organizations, the model forecast was superior, while for the other organization, the market adjusted forecast had the lowest RMSE.


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