do feeder cattle futures follow fed cattle futures

I used the current nearby corn futures for each month and used the live cattle futures 8 months out for 4-600 lb. I broke the data into two time periods: September 2010 through August 2013 and September 2013 through August 2016. I looked at weekly feeder cattle prices from Oklahoma from September 2010 through August 2016. In this newsletter, I want to revisit the question of what is the relationship between corn and feeder cattle price, and see if this relationship has changed again in recent years? corn production, and the new crop corn at $3, it is interesting that there has been almost no upward response in the feeder cattle market.

Given the current strong forecast for U.S. For 2007-2011 he found overall feeder cattle prices were less responsive to changes in corn prices than historically thought. Feuz wanted to examine a historical idea that a $0.10 decrease in corn prices resulted in a $1/cwt increase in feeder cattle price.

Several years ago, Dillon Feuz wrote an article for In the Cattle Markets on the relationship between corn and feeder cattle prices. This assumes that all other factors have remained constant, including other feeding costs as well as fed-cattle price. This means, as the price of corn increases, the price of feeder cattle decreases. The corn price has typically had an inverse relationship to both fed and feeder cattle prices. Historically feeder cattle prices have been determined by several factors, with corn price and fed-cattle price having the greatest impact. – Brenda Boetel, Professor, Department of Agricultural Economics, University of Wisconsin-River Falls

Do feeder cattle futures follow fed cattle futures