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Full-Text Articles in Life Sciences
Risk Management And Marketing, Gene Murra
Risk Management And Marketing, Gene Murra
South Dakota Beef Report, 1986
Some risk can be transferred to someone else, some may have to be retained by the producer. Price risk is one type of risk which can be shifted to someone else. The cash market method of pricing keeps the risk in the hands of the producer. Often, that means that risk is not managed, just accepted as part of doing business. The forward pricing techniques--cash forward pricing, futures market and options--offer some opportunity to manage price risk by shifting some of that risk to someone else. Merely shifting price risk to someone else doesn't necessarily mean either more profits or …
Cash Settlement For Feeder Cows, Gene Murra
Cash Settlement For Feeder Cows, Gene Murra
South Dakota Beef Report, 1986
The change in the feeder cattle futures contract from physical delivery t o cash settlement should not affect a producer's net price for his feeder cattle. For those producers who hedge or use the cash forward contract. the main impact is in the basis. Now, a smaller basis (by about $3) should be used compared to what the producer used prior to cash settlement. Under the old delivery procedure. once a producer used the futures market as a hedge (sold a futures contract), there were two alternatives--either buy back the contract or delivery. If the contract was not "bot" back …
Profitability Of Feeding Cull Cows, Richard Shane, Wayne Ellington
Profitability Of Feeding Cull Cows, Richard Shane, Wayne Ellington
South Dakota Beef Report, 1986
The seasonal price pattern exhibited in the South Dakota cull cow market is one of low prices in the fall when most culling is done with increasing prices well into the following year. This pattern supports the assertion that cattle producers may improve profitability of their operations by feeding cull cows for several months rather than selling immediately at culling time. A dynamic programming model was used to determine the optimal strategy for marketing cull cows in South Dakota. The model systematically evaluated the sell now versus the hold and maintain or feed for gain strategies of the producer. Results …