Hayenga, Marvin L.; DiPietre, Dennis D.; Skadberg, J. Marvin; Schroeder, Ted C.

Journal of Futures Markets Vol. 4 no. 2 (1984): 141-154.

Livestock futures markets are a marketing tool available to participants in livestock and meat production, processing, and merchandising. There has
been controversy, however, regarding the usefulness of the live cattle futures market for producers. Questions have arisen about the impact of futures markets on cash market price behavior, the accuracy of the futures market as a predictor of future prices, and the usefulness of this futures market to livestock producers, both large and small. This study will focus on the profit opportunities available to livestock producers through futures markets, and the risk premiums implicitly paid by hedgers.