A key component in beef cattle profitability : factors affecting Missouri feeder steer prices by weight differential
The beef cattle industry is a leading contributor to Missouri's agricultural economy, making it essential to provide producers and stakeholders with data and analysis regarding the economic factors that influence the success of Missouri's cattle producers. The objective of this research is to identify and evaluate the key economic factors that influence feeder steer prices across six weight categories (300 -- 400 pounds, 400 -- 500 pounds, 500 -- 600 pounds, 600 -- 700 pounds, 700 -- 800 pounds, and 800 -- 900 pounds). While many previous studies evaluating factors affecting feeder steer prices are modeled on animal performance and body condition, this research prioritizes economic factors that influence price differences between weight ranges of feeder cattle. Using an ordinary least squares (OLS) regression, the results indicated that corn price, calf crop, expected fed cattle price, the total prices paid index, precipitation 18 months prior, and price of feeder steers 24 months prior are significant determinants of feeder steer prices in Missouri in at least one of the six equations.Findings from this study provide valuable insights into the cattle industry for cattle producers looking to purchase or sell feeder calves and for stakeholders looking to better understand the driving forces behind feeder steer prices.
Networked Digital Library of Theses and Dissertations