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Ridgway, IL | I feel like I am watching Groundhog Day. You continue to say that there are no options, even though there have been several listed here.
The way I understand your side of the argument is that there isn't a futures contract for light calves, so you can't hedge. To me, that's like saying as a corn grower that I can't hedge because there isn't a futures contract for 2 foot tall corn growing in the field. You seem like you want a futures contract for for 500lb Hereford calves in Wisconsin.... Well how many people would be interested in trading that? How many people would be interested in trading a field of 2' tall standing corn in Illinois?
I mean, use your imagination a little bit. The value of a 5wt is a function of either fc or lc futures and cost of gain.
i can write a basis, futures, or cash contract for 800lb steers.... Surely that is close enough to what youre trying to hedge that you can see how you can derive fair value for any calf based on quality, location, differentials etc?
Sometimes, if I'm in the middle of a corn field changing a center drive on an irrigation system I realize I forgot my 9/16" wrench.... Well, I don't just toss my hands up and say guess we can change this center drive and let my corn burn up.... I use my vice grips and get the damned job done.
I mean nothing personal by this at all, I seriously disagree with your logic... I believe it is dangerous to producers of maybe more modest means... Such as myself.
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