Why price slides at livestock markets and in forward price contracts are important when making production and marketing decisions is explained in a new publication from the University of Wyoming Extension.
Price slide is the naturally occurring phenomenon that cattle prices tend to decrease as an animal’s weight increases.
What is the Price Slide?, B-1319, is available for viewing or free download by going to www.uwyo.edu/uwe and clicking on Find a Publication. Enter the title or number.
If making operational changes to increase weaning weights – for example, buying more expensive bulls or shifting calving dates – understanding how that decision affects calf values, not just weights, can be important, stated the authors. Understanding how price slide affects forward contracts can help producers decide whether or not to deliver calves that are under or over the agreed-upon weight.
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