With fall calf values nearing $1,500 per head, the average TSCRA member may gross more than $60,000 in calf sales this fall. Given these historically high values, ranchers are increasingly interested in ways to protect their price risk.
Fewer than 10 percent of TSCRA members have adopted hedging to manage price risk, but proposed updates to feeder cattle contracts may make hedging a more attractive tool for ranchers.
The CME Group is considering changes to feeder cattle contract price limits and weight ranges. These changes will be of interest to any ranchers who price cattle against the feeder cattle index. Additional changes are being considered that may appeal to ranchers marketing groups of 40 to 50 head.
Jack Cook, director of commodity research and product development for the CME Group will be at the Policy Conference to discuss these programs and proposals in detail. Cook is seeking your input on these critical issues so please come prepared to provide your thoughts and concerns about CME’s risk management tools.
Cook will speak at the Marketing Committee meeting on Thursday, Sept. 24, at 8:00 a.m. This session is included with all meeting registration packages. Click here for registration and schedule information…