PK602 Cutout Report Rundown Brad Kluver, Swine Production Specialist
Risk management remains a top priority in our industry, even as we enter what appears to be a more favorable period than the past 18 months. Now more than ever, ensuring profitability is essential. However, effective risk management—particularly when pricing hogs—is often easier said than done. Pricing grain tends to be more straightforward for most of us. We understand the relationship between futures, basis, and cash price, and we can use contracts within those components to lock in a sales price. While factors like weather and yield still introduce variability, the process itself is relatively clear: we can price a set number of bushels and know our expected revenue. That doesn’t make it easy, but at least it follows a defined structure.
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