“The risk of a government shutdown not only threatens the availability of important market data, but also could endanger the viability of an important risk management tool to protect hog farmers. “… Read more.
Find out about factors affecting margins and strategies you can use to take advantage of current opportunities in the market.
“Hog producers who are evaluating forward price or margin coverage have many different risk management tools to help address their varied market exposures. “… Read… Read more »
“Much has been written about the negative outlook for the swine industry and the extremely depressed returns producers are currently experiencing.”… Read more. Find out… Read more »
“As we begin the new year, a lot of uncertainty remains following a tumultuous 2022, but there are reasons to be hopeful and optimistic.”… Read… Read more »
“While overall the fundamental backdrop of the hog market is supportive as we move through Q4, one should not lose sight of the risks.”… Read… Read more »
“Producers have been given a chance to remove significant risk from their operations over the next year while maintaining opportunity to the upside through flexible… Read more »
“For many of us involved in the pork industry, the turn of the calendar to June means World Pork Expo is once again upon us…. Read more »
“Hog margins have steadily improved since the beginning of the year. Futures markets are projecting the highest forward-looking hog margins for a model operation since… Read more »
“The outlook for forward hog margins is less optimistic than it was even a month ago following the release of the USDA’s September Hogs &… Read more »
“In today’s fast-paced world where everyone is connected to the 24-hour news cycle, it can be difficult to tune out noise and opinions.”… Read more…. Read more »
“Crop producers are likely tight-fisted with new-crop bushels given bullish price expectations and the futures market inversion, although history suggests they may want to consider… Read more »
“The last twelve months is a period most of us would just as soon move past. While much attention was focused on a global pandemic,… Read more »
“Tumultuous market conditions and repeated ad-hoc disaster payments highlight need for improved longer-term, market-based support for livestock producers.”… Read more. Find out about factors affecting… Read more »
“After the roll out of the Coronavirus Food Assistance Program, it’s important to understand who qualifies and how payments are calculated for eligible commodities”… Read… Read more »
“As more and more hog producers have contracts tied to cutout, it’s important to understand the various reports USDA releases and the information contained in… Read more »
“Hog producers begin 2020 with increased optimism over trade and demand, although it is important to remember the supply side situation and its impact on… Read more »
“Hog producers are facing significant volatility this year from the impact of China’s African Swine Fever outbreak and the ongoing trade war with the U.S…. Read more »
Given the recent spike in hog prices and volatility, producers may find that a “portfolio” approach to margin management may help to spread the risk… Read more »
With 2018 now over, many producers are no doubt looking ahead to the New Year with optimism that a trade deal will be struck with… Read more »
Hog producers are faced with heightened uncertainty moving forward due to many factors including increased domestic production and processing capacity, trade issues, and the presence… Read more »
Dairy producers now have a new risk management tool to add to their arsenal as they weigh alternatives to protect milk revenue in forward production… Read more »
Many hog producers are thinking about, or are in the process of negotiating new packer contracts that will change the way they are paid for… Read more »
National Agricultural Statistics Service (NASS) is responsible for the task of providing production and yield estimates for most crops grown in the United States. As… Read more »
Many traders study the relationship between the cash market and futures, as well as the relationship between nearby futures prices and deferred futures contracts. The… Read more »
Many traders closely follow the CFTC’s Commitments of Traders reports to look at the breakdown of open interest in the market, and specifically, how managed… Read more »
Despite expectations for limited movement in the grain and oilseed markets following large U.S. harvests last fall, winter weather in Argentina has negatively impacted crop… Read more »
While the primary goal of margin management is to reduce the risk of loss, the same types of strategies are also valuable when margins are… Read more »
Most producers inherently understand that they operate in cyclical industries. They may allow their balance sheets to expand in good years and let the ledger… Read more »
Although it is easier to strategize about protecting profitability when margins are good, a sound risk management plan applies to all environments, and is even… Read more »
As both corn futures prices and corn option implied volatility hover near historical lows, livestock producers may want to consider securing low-cost protection now for… Read more »
While no one likes a smaller milk check, dairy risk managers who want to protect their profitability will need to account for mandatory deductions in… Read more »
While many hog producers are celebrating the prospect of additional slaughter capacity, they may also have concerns the impact on hog margins from three new… Read more »
A good risk management advisor can be a valuable asset for agriculture producers, especially during volatile markets. But who you work with – and how… Read more »
While seasonality considerations can be an important part of a thoughtful margin management policy, the value of seasonality data has it limits and producers should… Read more »
For most agriculture producers, capital is an asset in limited supply. Hedging strategies, such as trading futures and options, can become quite capital intensive. That’s… Read more »
When Grassland Dairy Products cancelled contracts with several producers in Wisconsin, it forced those producers to scramble for a replacement processor. Fortunately, it appears that… Read more »
Of all the questions we receive about margin management, one that comes up frequently is: how can I be sure that my position is a… Read more »
Agricultural producers are accustomed to a certain degree of uncertainty. But this year there is an added layer of unknowns over potential changes to trade… Read more »
Today, many agriculture operations find they need the flexibility of exchange-traded options, which allow you not only to protect attractive margins, but also capture future… Read more »
As a new year begins, we take the opportunity to reflect on the past 12 months and learn from what happened in the markets. Following… Read more »
A sound, detailed margin management policy document can facilitate the credit review step by giving your lenders confidence that you have a well thought-out strategy… Read more »
Whether your margin management is guided by a formal policy document or a loose set of rules, chances are that it essentially boils down to… Read more »
You may have heard that USDA will soon implement changes to its hog industry reports. But if you are like many hog producers, you may… Read more »
Like many farmers, you may see signs all around you that corn supply is robust and prices will stay low. While you may see clear… Read more »
You may think that the goal of margin management is to capture and protect favorable margins. And you would be right – but only to… Read more »
Make a Margin Management Succession PlanPreparing for the next generation to take over the family operation is a critical step. Learn the factors to consider… Read more »
Incorporating Seasonality Into a Margin Management PlanThis month, we explore how seasonality affects margins and why producers may want to consider this factor as part of… Read more »
Featured Article -Margin Management Adjustments – A Look at the Recent Soybean Meal Market Our feature article this month examines the recent volatility in soybean… Read more »
Featured Article – MPP Revisited Our feature article this month revisits a topic that we have examined previously in the dairy sector. The Margin Protection… Read more »
Inside This Issue The issue of how to handle managing the price of corn when you both grow it and feed it to your livestock… Read more »
MARGIN MANAGEMENT AND INFORMATION TECHNOLOGY: AN INTERVIEW WITH JASON BLOCK We sat down with CIH Vice President of Technology, Jason Block to gather his insights… Read more »
Featured Article – 2015 Year-End Review – Lessons Learned: In this year-end issue of Margin Manager, we take a look back to reflect on our… Read more »
Featured Article – Understanding Swap Agreements In the last few Margin Managers, we have featured articles discussing some of the more common alternatives used including… Read more »
Featured Article – Contracting with Futures In our last installment, we discussed forward contracting agreements in the cash market along with some of the considerations… Read more »
Feature Article – Forward Contracting Agreements The feature article this month begins our series into comparing contracting alternatives. In Forward Contracting Agreements, we discuss the… Read more »
Feature Article – Contracting Comparisons There has been a proliferation in the use of swaps contracts over the years as both a speculative and risk… Read more »
Feature Article – Margin Management Adjustments – A Look at Corn While most producers abhor volatility and the added stress it brings, it also affords… Read more »
Feature Article – Open Outcry Goes Dark Our feature article this month, “Open Outcry Goes Dark” discusses the CME Group’s decision to close down open… Read more »
Feature Article – Historical Analysis and Margin Management Our feature article this month, “Historical Analysis and Margin Management” discusses the benefits of adopting a long-term… Read more »
April Margin Watch Summaries With spring now firmly established across the country, attention has turned to planting progress and the outlook for this year’s crops…. Read more »
Feature Article – Margin Management and Seasonality Revisited In “Margin Management and Seasonality Revisited,” we discuss implied volatility and how this relates to an option’s… Read more »
Feature Article – Revisiting the MPP Our feature article, “Revisiting MPP” explores coverage that the program offers in light of where current margins may exist… Read more »
As many hog producers are aware, the Livestock Mandatory Reporting Act (LMR) is set to be reauthorized by Congress in September, 2015. This month’s newsletter… Read more »
Inside this issue you’ll find the latest Margin Watch reports for the beef, crop, dairy and hog industries. We’ve also put together an article detailing… Read more »
This month’s issue of Margin Manager includes the following: Protecting Higher Prices Against Long Physical Ownership – This article addresses a common question that comes… Read more »
This month’s issue of Margin Manager includes the following: The Cash Market and Margin Management – Explores when it may be advantageous to contract a… Read more »
This month’s issue of Margin Manager includes Margin Watch Reports for Hogs, Beef, Dairy, Corn, Soybeans and Wheat. And a special Dairy White Paper, entitled,… Read more »
This month’s issue of Margin Manager includes 12 pages of in-depth coverage, including: Margin Watch Reports for Hogs, Beef, Dairy, Corn, Soybeans and Wheat. And… Read more »
This month’s issue of Margin Manager includes 16 pages of in-depth coverage, including: Margin Watch Reports for Hogs, Beef, Dairy, Corn, Soybeans and Wheat. And… Read more »
Inside this issue of Margin Manager you’ll find: Chip Whalen explores the importance of maintaining flexibility. Q&A: “What if I Feed My Own Corn?” Interview:… Read more »
Inside the May issue of Margin Manager, you’ll find: Chip Whalen tells you how to factor production risk into your margin management plan. Q&A: Michael… Read more »
Inside the April issue of Margin Manager, you’ll find: Get the latest Margin Watch reports for beef, corn, dairy, hog, beans and wheat Chip Whalen… Read more »
Inside the April issue of Margin Manager, you’ll find: Hog producers, Bob and Joe Dykhuis discuss the way the margin approach reduces stress levels and… Read more »
Inside the inaugural issue of Margin Manager, you’ll find: Dairyman, Steve Whitesides discusses the way he leverages the margin approach to make volatility work for… Read more »