Abattoir: A plant or factory where cattle are slaughtered for
food (also known as a processing plant, slaughterhouse, or
meatworks). A¢/kg FAS: Australian cents per kilogram free
alongside ship. Agent: Sells and buys cattle on behalf of
clients. (See also 'livestock agent' and 'stock and station
agent'). Arbitrage: Simultaneous purchase and sale of two
different contracts (or a combination of cash and futures) to
take advantage of perceived mispricing. In a pure arbitrage,
mispricing is locked in and a risk-free profit made through
trades. Ask: See Offer. AuctionsPlus: An internet based
livestock auction system (see www.auctionsplus.com.au).
Backgrounder: A cattle producer who produces young cattle ready
for lot feeding. Backgrounding: Growing program for feeder
cattle from the time calves are weaned until they enter a
feedlot to be finished on a high protein ration. (See 'weaner'
and 'feedlot'). Basis: The difference between the price on the
physical market and the futures price. Basis risk: The risk that
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