MARKETING...
Insuring Against Volatility
Livestock Risk Protection insurance is an option to manage volatile cattle prices.
As price volatility continues to make headlines, cattle producers looking to better manage risk may want to consider the Livestock Risk Protection (LRP) insurance that is available. The pilot program, which has been available for the last few years, offers coverage for feeder cattle and fed cattle, allowing producers to limit downside price risk while still being able to take advantage of higher prices.
Melissa Stearns of Edgemont, S.D., is a crop insurance agent licensed to offer LRP to cattle producers in South Dakota, Nebraska and Wyoming. She explains that LRP is very similar to a put option on the futures market, with one distinct advantage. LRP insurance allows a producer to insure as few head of cattle as he or she wants to — whereas feeder cattle put option contracts must be purchased in 50,000-pound (lb.) increments. Read more.
Darrell Mark
In the Cattle Markets
Records were meant to be broken.
(March 14, 2011) — The average Five-Area Market price for the week of March 6-12 was $117.89 per hundredweight (cwt.), $5.50 per cwt. higher than the previous week's average of $112.39 per cwt., which also was a record up to that point. Prices in the two consecutive weeks prior to that, at $111.02 per cwt. and $109.68 per cwt., respectively, were also records.
The fed-cattle market wasn't the only one to post records that week. Live-cattle futures also posted an all-time high for the nearby contract at $117.65 per cwt. March 10. The "old" futures market record, which has been broken several times lately, was $103.80 per cwt. on July 3, 2008. Feeder-cattle futures similarly posted a record high March 9 at $132.20 per cwt. The "old" record was $119.47 per cwt. on Sept. 6, 2007. The sharp rally in boxed beef prices the second week of March also resulted in the highest boxed beef prices since October 2003. Read more.
USMEF-Japan Update
Earthquake in northern Japan sends ripples around the world.
In the aftermath of the devastating magnitude-9 earthquake and resulting tsunami that ravaged much of northern Japan March 11, the staff of the U.S. Meat Export Federation (USMEF)-Japan is working around the clock to assess the impact this natural disaster has had on the country and, in particular, the meat trade of Japan. Read more.
CAB® 3QQ
Three quick questions with Mark Merryweather.
Chef Michael Ollier (left) helps Mark Merryweather (right) set up a photo shoot.
Anyone who has taken family pictures with toddlers or bull photos for a sale book knows that getting it just right can be a challenge. Compared to all the moving kids or bovines, one might think food photography would be easy. The official Certified Angus Beef LLC (CAB) food photographer would disagree. Graphic designer Mark Merryweather says there is way more that goes into that perfect picture of a sizzling steak or a juicy burger. And he knows by comparison because he takes a lot of pictures of his preschool-age son, too.
He is an artist through and through. From high school classes to previous jobs where he served as photography director on set, Merryweather honed his talent behind the camera. Now he uses that craft for the good of the Certified Angus Beef® (CAB®) brand. All the work that goes into these food shots is toward one ultimate goal: selling more CAB. Read more.
Sara Snider
The Source
Record time!
Spring means green grass, newborn calves, taxes and records! It may not necessarily come in that order, but once the snow melts, it is a sure sign that paperwork is inevitable. It's easy to put off certain tasks in the hustle and bustle that comes with warmer weather, but it's something that needs to be done.
As I worked through our taxes this year, I was so thankful for the accordion file I had started at the beginning of 2010. Each pocket was neatly labeled and most of the records I needed were right where they were supposed to be. I say most because, try as I might, year after year I still have to track down receipts and call a few companies to ask them to please fax duplicates. But each year I get a little better, taxes get a little easier, and that's progress in the right direction! Read more.
Adding, Capturing Calf Value
Cattlemen may hear about the shrinking beef industry and wonder about their role in the future. They can take heart in the expanding high-quality end of the business, however.
Licensed partners of the Certified Angus Beef® (CAB®) brand worldwide sell more than 2 million pounds (lb.) of branded product per day, and supply has increased 92% in the past five years. That's according to Mark McCully, CAB assistant vice president, supply.
Addressing producer-members of the Pittsylvania County Cattlemen in Chatham, Va., earlier this month, McCully said demand for CAB products grew along with supply, and that represents opportunity for producers. Read more.
Angus Calendar
To view the Angus Calendar, a complete list of
Angus sales, click here.