Understanding and Calculating Price Slide

Rikki Wilson, Livestock and Feed Extension Specialist, Humboldt

September 2025

The fall run is in full swing in Western Canada and beef cattle producers are thinking about when the right time is to sell their calves. They also need to consider different marketing avenues; whether it’s online, an auction mart or direct from the ranch. On top of these decisions, producers must fully understand key terms to avoid costly mistakes. Cow-calf producers typically sell calves once a year, therefore, these terms may fall out of memory and should be reviewed. One important term for many producers is “price slide”

A price slide is agreed upon between a buyer and a seller when setting up a purchase agreement for a lot of calves. The slide is always agreed upon prior to the specified delivery date for the calves. This enables the buyer to offer a price prior to the actual weighing of the calves. The buyer and seller will negotiate on a delivery date and the expected average base weight of those calves at the time of delivery, as well as negotiating shrink and a base price per pound or hundred-weight (CWT).

A price slide is then offered by the buyer and is impacted by several factors. These factors consider expected market trends at the time of delivery, grain markets and overall fed-cattle margins. In some instances, a price slide may be open to negotiation. A large price slide disparity can have a major impact on an operation’s bottom line, as highlighted below in the tables.

The current weak feed grain market has created conditions for strong calf prices and an increased risk for the future fed cattle market. Thus, the price slide has widened substantially for forward-contracted calves. Where 20-slides have been the recent standard this year, it’s not uncommon to see a 40-slide and, in some instances, up to an 80-slide. These numbers refer to the number of dollars reduced or added per hundred-weight from the originally negotiated base price. On a per-pound basis, these numbers become cents. If calves are delivered heavier than the original contracted weight, the price slides down to accommodate the extra pounds. If calves are delivered lighter than the original contracted weight, the price slides up. Sellers should be aware that this slide margin will still trigger even if the calves aren’t a complete hundred-weight over-or-under the contracted weight. Instead, the slide is reduced percentagewise to make up for smaller weight differences.

The formula used to determine the total price slide is as follows:

The following examples have been provided to illustrate how a price slide may impact the final sale price of forward-contracted calves, in dollars per CWT and dollars per pound, depending on the preferred units:

The following examples have been provided to illustrate how a price slide may impact the final sale price of forward-contracted calves, in dollars per CWT and dollars per pound, depending on the preferred units:

Example 1: 40-slide versus 20-slide

Terms

Price Slide Effect: Option 1

Price Slide Effect: Option 2

Example 2: 80-slide versus 40-slide

Terms

Price Slide Effect: Option 1

Price Slide Effect: Option 2