Mid-America Feed Yard
Risk Management 05/22/17 11:24:33 AM
Here at Mid-America we offer several choices for risk management of your cattle on feed with us.
We would like to make you aware of the tools that we have available to help manage your risk.
1. PACKER FORWARD BASIS CONTRACT. Packers will give us a negative, even or positive basis bid for the month your pen is projected to go out in the future.
Having a set basis amount is an advantage over the uncertainty of basis with futures contracts. The price is established from the CME day trade, you set the price.
Certain packers also have contract addendums which feature additional risk management alternatives. Please contact us to discuss Packer Contracts.
2. Mid-America's LIVE CATTLE CONTRACT AND PRICING CONFIRMATION. Customers can set an Initial Price on your cattle based on the CME futures market.
3. Mid-America's LIVE CATTLE CONTRACT AND FLOOR/CEILING PRICING. Customers can set a Floor Price and/or Ceiling Price on your cattle.
*The Mid-America contracts are forward contracts. Please contact us to obtain a copy of our forward contracts.
4. We can suggest a local broker to set up your own futures account.
In addition, we can lock in corn quantity and price with our Fixed Price Corn Contracting Program to help with feed costs.
Click Here To Read more on our Fixed Price Corn Contracting.