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| The idea of futures for farmers is to lower risk not increase it. And futures losses are permanent not like stocks or the index where you can be wrong for years and have them turn around obvoiusly we all hopefully know this but sometimes reminders are good.
One more market neutral-ish idea I have is buying live cattle and selling feeders on the board. If there is a nasty market downturn feeders will likely get hit hardest. one big risk feeders have is grain going higher. Especially since grain has been so low compared to everything which has made feeders run so hard. With major fertilizer disruptions its hard to say how bad the 26 grain crop has been hit but seems like prices will likely be higher by the fall.
Currently I have a put at $3 March calves and $3.08 October calves hopefully they all expire worthless. Than a few calls on corn.
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Longing feeder cattle.
