Marketing Summary for 2004 Feedlot Shortcourse

This worksheet is designed to follow alternative marketing decisions for the group of heifers fed during the Feedlot Shortcourse.  Follow the tabs across the bottom of the page to review the different marketing strategies.  The strategies being followed include:

1)     Cash market

2)     Hedge and hold (sell futures on June 3 and buy back at slaughter)

3)     Buy an "at the money" put option.  In this case an $88 put for $4.60/cwt

4)     Follow a 3-day/9-day moving average strategy

5)     Follow a 5-day/15-day moving average strategy

6)     Follow a 15-day/45-day moving average strategy

7)     Sell at $92 or July 10 which ever comes first.

For strategies 4, 5, and 6 we start June 3rd with no futures position until the moving average signals a decision.  We will follow both a strategy of holding the position once triggered and one of following every signal which will get us in and out of positions.

Each strategy will report the position price, the gain or loss per cwt, and the net change in the margin account.  Because brokers may have different margin requirements we will track the margin account starting with a $0 balance.  When it is negative you would have recieved a margin call.  When it is positive you will have a surplus in your account.

We will update this sheet each Friday and provide an explanation of the activity for each strategy on the Summary tab.