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1988; Kansas Agricultural Experiment Station contribution; no. 88-149-S; Report of progress (Kansas State University. Agricultural Experiment Station and Cooperative Extension Service); 556; Swine; Hedging; Hog marketing; Hog profits
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Hedging Opportunities For Feeder Pig Finishers (1988), Ted C. Schroeder
Hedging Opportunities For Feeder Pig Finishers (1988), Ted C. Schroeder
Kansas Agricultural Experiment Station Research Reports
This study examined the frequency of profitable, short, hedging opportunities that have been available to feeder pig finishers in recent years. The results indicate that there have been periods offering frequent opportunities to "lock in" a profit by hedging. However, there have not been many extended periods beyond 6 mo offering frequent profitable hedging opportunities, and over several feeding periods, no trading day offered profitable hedging opportunities. Though not always offering a profit, the futures market offered some improved returns relative to the cash market. During a few feeding periods, improved return opportunities were present in excess of 80% of …