Commercial Meat Hedging
Take Control in Any Market Environment
Arrangements between producers and processors, and subsequently buyers, today are diverse and ever-evolving. That’s why a sound approach to risk management doesn’t rely solely on forecasts, but on an objective and reliable process. CIH empowers pork, beef and ingredient buyers to achieve their long-term pricing objectives with personalized guidance, powerful decision-making tools and ongoing education.
- Identify and evaluate your commodity price risk exposure
- Weigh potential costs and benefits of various hedging alternatives including lean hog and pork cutout futures, swaps and options
- Make adjustments to address risk or take advantage of opportunities as prices move over time
Robust Tools Give You a Competitive Advantage
Our clients have access to a customized risk management website that integrates market data and robust charting capabilities with a detailed model of your operation. The result is a suite of tools that provide unparalleled visibility into your exposure and coverage.
- View the impact on net price from a position or adjustment before you place it
- Receive alerts when prices reach a pre-determined level
- Track current positions, including open orders and fills
- The ability to help with price projections and objective data analysis and a transparent, centralized location of commodity data
Technology and Expertise to Help Evaluate Which Hedging Instruments are Best Suited for You
- Using strong correlations we can run regressions, calculate an intercept, or basis value, and use that to predict a forward value
- Generating forward price curves off both the cutout swap midpoint and pork cutout futures allows for greater control in forecasting budgets
- Provide the ability to view an overlay of a forward price curve on top of historical cash data
As a client, you also have access to CIH’s formalized education offerings, which allow you to deepen your understanding of risk management concepts from fundamentals to highly sophisticated strategies.
Learn More
If you’d like a demonstration of our service, please contact us.
Tired of Market Uncertainty?
Click the link below and walk through a use case scenario for using the CME Pork Cutout futures contract to manage increasing input costs.
Case Study: Using PRK to Protect your Forward Price Risk 
Intrigued & Want to Talk More?
Click the button below to schedule a brief 15 minute meeting with a CIH professional risk manager to discuss how these topics might apply to your business.
