H@ms Co-op Announces Risk Management Program06 August 2013
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CANADA - H@ms Marketing Services has introduced a new Fixed Forward Price Program that will be provided to hog producers marketing to Thunder Creek Pork in Moose Jaw, writes Bruce Cochrane.
The h@ms Marketing Services Co-op has announced, beginning 5 August, a Fixed Forward Price Program will allow producers who market to Thunder Creek Pork to price hogs up to ten months in advance of delivery.
H@ms general manager Perry Mohr says this type of risk management tool has been offered in Manitoba since 1995 where it's varied in popularity from year to year.
Perry Mohr-h@ms Marketing Services
Typically over the years we've seen producers lock in between 20 and 40 per cent of their production on an annual basis.
Typically the 20 per cent comes in years when hog prices are looking like they're going to be good and the 40 per cent usually comes in years when it looks like hog prices are going to be poor.
It's more critical than ever for producers to be on top of these things.
There's so many factors that come into play on a daily basis that impact the lean hog futures.
We used to be somewhat immune to what was happening in other parts of the world but now we're truly in a global market place.
What happens in China has an impact on US hog prices.
If US hog prices go up or down that has an impact on us.
This really gives you the ability to position yourself to eliminate as much price risk as possible in today's market place.
Mr Mohr notes h@ms has started sending out sample prices to familiarize producers with what the price levels will be and he encourages those who have questions to visit the h@ms web site at hamsmarketing.ca or to contact the office directly.
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