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western iowa,by Denison | From a post down below ,Gary Edwards made the comment that using puts and call's is speculating-so I guess my question to Gary and anyone else is if you don't use put;s,calls,the board or a packer contract-how the heck do you hedge these cattle?Lets use myself as a example-I have 900 head of fat cattle ready in Dec.,Jan., and Feb-how would you hedge these cattle-I could just feed on the open market -but I don't want to risk my whole life work to be at the mercy of the market
Gary Edwards says puts do nothing for protection-Mn Feeder says feed on the open market and replace them with the next set of cattle-and I realize that it's evidently not a lot of money to those two feeders to even worry about-for myself -I'm not comfortable feeding that many without risk protection-Hats off to those two feeders-I lost my boldness back in the 90"s when I went backwards on a set of cattle
I have bought some puts underneath them and after all Gary Edward's comments-I'm wondering if I should just get out of them all together-according to everyone else-the market is going higher and with feeders about $10 above the board for a breakeven-they must be rite
I do have a pen that would hold 70 head-and have plenty of feed on hand-should a guy just roll the dice and buy some 800# cattle and feed?My order buyer said for $1700 he could find me some good steers-I would have $2400 in them weighing1500# | |
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How do you protect the cattle you are feeding(hedging etc)
