Evaluation of basis levels as contracts approach maturity in the united states live cattle futures markets [electronic resource] /

by Salnars Polanco, Christian J.

ABSTRACT: Over the past decades, the live cattle and beef industries have experienced structural changes which have had an effect on prices of cattle. An increasingly volatile live cattle market has led many producers to use hedging in the futures markets as a risk management tool to protect themselves against adverse price change. Understanding and being able to accurately predict basis levels is a key for successful hedging. There are many factors that influence cash and futures prices, making it harder to forecast basis levels.