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PEDV-Sensitive Market Requires Sound Risk Management Strategy
2014-05-27 23:05:00| National Hog Farmer
By Mark Greenwood, AgStar Financial Services, Mankato, MN When it comes to market dynamics, 2014 has been a very interesting year for the swine industry. We have seen record- high cash hog prices while at the same time, producers have been dealing with porcine epidemic diarrhea virus (PEDV). Practicing sound risk management has been key as the industry navigates through an environment with historic margin calls as well. Its also worth noting that swine producers are receiving over $225 for their hogs, but some are still unhappy because production is not as good as it has been in the past, causing them to lock up margins too early and requiring them to pay margin calls. We have also seen our operating lines drop from a peak volume of over $1 billion to $600 million, which is a drop of 40% in less than 60 days. These are interesting times. read more
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Category:Agriculture and Forestry