Search
Displaying 141 - 150 of 242
June 28, 2018
Hedging & Options
INTRODUCTION
The CME Live Cattle Futures Contract has been an important risk management tool available to
the cattle and beef industry for more than 50 years. The magnitude of capital at risk in the
industry together with elevated market volatility present today makes having a viable live cattle
futures market of immense importance in price risk management. The viability of this market
hinges on how effectively its use mitigates fed cattle price risk for hedgers.
The performance of the live cattle futures market rests heavily on contract specifications. One
debated contract specification in live cattle futures is physical delivery as a way to settle the
obligation of a short position in the market. The delivery option is the main way cash and
futures prices for delivery settled contracts can be aligned in the delivery period near contract
expiration. Convergence of cash and futures in the current contract is conditioned on delivery
potential. However, a variety of concerns surround live cattle futures contract delivery. The
magnitude of concerns prompted industry and CME Group discussions to consider eliminating
delivery in live cattle futures and switch to a cash settled contract.2 Though certainly not new,
as switching the contract to cash settlement was considered in the mid‐1990s,3,4 the debate has
elevated again in recent years.
NCBA has an established policy position supporting physical delivery settlement of the live
cattle futures contract.5 However, concerns surrounding delivery need to be carefully assessed
and evaluated to potentially improve this component of the live cattle futures contract. This
project was designed to identify and document concerns with current delivery and to provide
practical guidance to NCBA as they consider alternative physical delivery mechanisms in the live
cattle futures market.
The range of sentiments of cattle market participants we interviewed for this study ranged
from those who thought the contract worked very well to those who see the contract and
physical delivery as outdated and inconsistent with the modern live cattle industry.
…
November 1, 2009
Pork Quality Grading System and Wholesale Pork Price Reporting
packers.
The purpose of this study was to determine advantages … e.g., enhanced product,
case ready product, branded product … enhanced products,
◊ capture case ready product because of …
November 1, 2009
packers.
The purpose of this study was to determine advantages … e.g., enhanced product,
case ready product, branded product … enhanced products,
◊ capture case ready product because of …
August 1, 2017
Breakout Sessions
orders; review. (a) In any case where the chief engineer … injunctive relief—and in some cases monetary damages—in order … can't say, 'No, we need to study it more.' Now is the time."
Additional …
May 7, 2021
Ag Law Issues
has announced that it is
studying INGs and will not issue any … portion taxable. In that case, it is not completely includible … 20, 2005). That’s the case even though historic data …
February 16, 2017
Hedging & Options
stronger than expected. In this case, a short hedger’s net price … The findings from this study reiterate the existing knowledge … time period and scope of the study and should be understood …
September 30, 2009
Agribusiness Papers
questionnaires were included in
the study.
Our post-distribution … the different ICTs. In all cases, with the exception of
smart …
Breakout Sessions
agricultural finance,
risk, and studying farmers’ willingness to … today.
` Purpose: To study farmers’ risk perceptions … risk. 282 4.28 1.35 5 5
12)In case of emergency, I have sufficient …
April 17, 2018
Land Use Value Research
insurance (DIRTI
five). For this study (Use Value Appraisal), property … irrigation equipment in this case. The irrigation equipment … a 1/4 section of land was studied in
cooperation with irrigation …
July 19, 2022
Recent Videos, Risk and Profit Online Mini-Conference Presentations
and quantifying damage
¾CaseStudy: Iowa derecho (August 10-11 … and quantifying damage
¾CaseStudy: Kansas flood (May-June 2019)
Emporia
quantifying …