Basis Variability on the Feeder Cattle Contract Versus the Failed Stocker Contract
Journal of Agricultural and Resource Economics
Basis variability is compared across markets, over time, between stocker and feeder cattle and the impact of market volume is determined. Variability was significantly greater with the Stocker contract. Volume varied seasonally by market. Increased market volume significantly reduced basis variability. Increased variability in market volume significantly increased basis variability.
Perversi, S., D.M. Feuz. and W.J. Umberger. 2002. "Basis Variability on the Feeder Cattle Contract versus the Failed Stocker Contract." Abstract Journal of Agricultural and Resource Economics, Vol. 27, p. 586.