Journal or Book Title
Western Economics Forum
First Page or Article ID Number
Feeder cattle prices depend on the weight of cattle and it is well recognized that prices per hundredweight (cwt) normally decrease as cattle weights increase. Not only do prices vary across cattle weights, but the magnitude of price differences depend on the weight of cattle. This price differential, more commonly known as a price slide, is a reflection of the costs to add weight to an animal (i.e., cost of gain). Because costs of gain ($/cwt) are generally lower than the price of cattle ($/cwt), lighter weight cattle have higher prices than heavier weight cattle and the price slide exists.
Western Agricultural Economics Association
Schulz, Lee L.; Boetel, Brenda L.; and Dhuyvetter, Kevin C., "Price-Weight Relationship for Feeder Cattle: An Updated Dairy-Beef Assessment" (2018). Economics Publications. 697.