Your operation is unique, so your risk management plan should be too. Our team will help build a customized hedge plan for your cattle and feed exposure that matches your risk tolerance, profitability, and market bias. Market volatility makes it important to have risk-adjusted planning expertise by your side to help you navigate it. Our experts work closely with livestock producers and buyers like you to create tailored plans that meet their operational goals.
Quantify and manage risk with a game plan that integrates cash, futures, options and insurance strategies. Model and track everything on one software platform built to identify and maximize your opportunities.
Price risk - Use flexible strategies to protect cattle prices, such as the use of options to retain upside, without locking them in.
Basis risk -Use calendar spread strategies on a seasonal basis and LRP to manage basis moves.
Procurement risk - Confidently make decisions with CIH’s tools/models that are calibrated based on your historical performance, like feed buyers securing input costs.
Our team and software suite provide clear and concise analysis for your cash, board, and insurance positions. We offer you real-time monitoring, execution support, and capital exposure visibility as well as ongoing performance evaluation of your hedge positions.
Monitor and evaluate position performance
Utilize powerful risk analysis tools
Determine your margin call exposure and capital needs
Provide guidance on adjustments to board/LRP positions
LRP Insurance provides coverage against market price declines for feeder cattle, fed cattle, and swine. It is typically available for purchase between the hours of 5 p.m. and 10 a.m. Eastern Standard Time, Monday through Friday. Cattle producers pay a premium for a selected price floor. If the ending price is less than the price floor, an indemnity is due. No transaction fees paid by the producers, no margin requirements and premiums are due after expiration. LRP’s capital and subsidy considerations make it attractive on its own or used with futures and options positions. Our experienced team will help model integrated positions that fit your objectives.
PRF Insurance is a subsidized insurance plan designed to offset the cost of rising feed expenses due to lack of precipitation. The policy is area based and measures deviation from annual rainfall. We also use historical rainfall patterns to help optimize coverage windows. Both PRF and LRP integrate with future and options to provide you with a multi-faceted approach. CIH’s proprietary analysis tools are tailored to your objectives.
EXPLORE INSURANCECIH helps meat processors and buyers manage risk by developing a customized plan that aligns with the company’s goals. The centralized resources provide the ability to help with price projections, budgeting, and analysis for decision-making needs. Leveraging our cutting-edge software and personal consultation will help determine where an operation has risk and the different ways to best mitigate it, tailored to your unique pricing protocols using budgeting, procurement forecasting, and systematic hedge management. An objective, systematic approach for offsetting risk is developed to achieve pricing goals and long-term profitability. In addition, access to CIH’s formalized education offerings, allow you to deepen your understanding of risk management concepts.
CONTACT CATTLE TEAM
Personalized Views: Stakeholders have visibility into your operation’s profitability and exposures through specialized custom dashboards and auto generated reports
Data Driven: Access a wide array of fundamental and technical data, coupled with custom reports to give you confidence in your game plan and execution
Attention to Detail: Position modeling, capital requirements, reporting and automated alert systems will give you peace of mind that nothing slips through the cracks, letting you know about market triggers or capital risk
In the videos below, you can hear directly from our clients about how CIH helps agriculture producers gain control over their commodity price risk.
Testimonials are not indicative of future success. Individuals providing testimonials were not compensated.
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