About the Hedge Analysis Tool

This page contains the following helpful information for users of the BeefBasis Hedge Analysis tool.

Purpose of the Hedge Analysis Tool

For select states and auction locations, provide your lot details to see a hedge analysis matrix show showing Basis, Sale Price, Gain on Hedge and Expected Realized Cash Price (from a hedge) based on different Cattle Future prices.

Input Descriptions

Coming Soon!

Sell Date

Enter the date when you expect to sell the cattle.

State

Select the state where you expect to sell the cattle.

Location

Select an AMS reporting location that best represents your local market.

Sex

Select the sex of the cattle that you are expecting to sell.

Frame

Enter the expected USDA frame category that is most appropriate for the cattle you intend to market.

Muscling

Select the expected USDA muscling (thickness) designation that is appropriate for the cattle you intend to market. If unknown, the most common grades are 1 or 1-2, depending on the region.

For more information, review the Muscling (Thickness) PDF

Weight

Enter the expected average weight per head of the cattle in this lot at the time they are expected to be sold.

Value must between between 200 and 1000.

Head

Enter the size of the lot (number of head of cattle) that you intend to market together.

Feeder Cattle Futures Price

Enter the current futures price ($/cwt) for the Feeder Cattle contract that will be nearby at the expected sale date.

Corn Futures Price

The forecasted cash price you should expect for the animal(s); based on sell date, weight, and specified location.

Feeder Contracts

Enter the number of Feeder contracts to hedge position.