Posted 5/27/2016 12:31 (#5323427 - in reply to #5323225) Subject: RE: Need information on price protection
western iowa,by Denison
JDSWMO - 5/27/2016 10:13
milofarmer1 - 5/27/2016 08:44
There has been plenty of advice for locking in price to those that aren't too blind to see it.
Can YOU see the difference between locking in a price and locking in a profit?
You could use the fat cattle options to guarantee a bottom on calves or cows by buying a put option-we have bought some cheaper puts in the fat cattle to hedge off the risk in the cow and calves on the ground-it seems if fat cattle go down feeders and cows follow-I do lock in a price on fats sometimes because the market doesn't want to rally-and want to move on to the next bunch-I have bought xtra puts also-when I'm nervous on price down the road on new crop calves still on the cow
Think outside the box to hedge risk I guess -all cow and calves are priced off the fat cattle market sooner or later
Need information on price protection
