Risk Management for Cattle Feeders, Using Futures and Forward Contracts
Lawrence, John D.
ISU Extension, No. SP 34 (June 1996)
Market price risk is a part of feeding cattle. Price risk accounts for most cattle feeding return variability, according to Kansas State University research. Price fluctuation will continue, but risk management tools exist to help producers lessen the impact of price swings. Properly used futures and cash forward contracts allow cattle feeders to more accurately predict the economic outcome of cattle feeding.
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