Risk Management for Cattle Feeders, Using Options

John D. Lawrence

Staff General Research Papers Archive from Iowa State University, Department of Economics

Abstract: Market price risk is a part of feeding cattle. This year, in addition to a relatively brief but dramatic fed cattle price collapse, corn prices increased dramatically between the time feeder cattle were purchased and finished cattle were sold. Price fluctuation will continue, but risk management tools exist to help producers lessen the impact of price swings. If used properly, options on futures contracts offer cattle feeders protection from adverse prices with the flexibility to take advantage of better prices should they occur.

Date: 1996-06-01
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:isu:genres:2037

Access Statistics for this paper

More papers in Staff General Research Papers Archive from Iowa State University, Department of Economics Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070. Contact information at EDIRC.
Bibliographic data for series maintained by Curtis Balmer ().