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| We raise a few hogs farrow to finish and we never use packer contracts. We are probably the last of a dying breed but we don't hedge much. We have a pretty desireable agreement with a packer that is not off the iowa southern minn or national number. If you need to hedge do it by selling the board or using options. The packer contracts usually have basis in their favor. We also buy a few isoweans on the open market. We got a barn filled today with 23$ triple neg with no shots. breakeven is 57.30 and feb board is 62. 9$ profit if you sell the board. One nice thing about the hog futures is that the cme settles the months right on the cash number. No crazy stuff like you see in cattle expirations. | |
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Hog marketing
