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.
Enter the date when you expect to sell the cattle.
Select the state where you expect to sell the cattle.
Select an AMS reporting location that best represents your local market.
Select the sex of the cattle that you are expecting to sell.
Enter the expected USDA frame category that is most appropriate for the cattle you intend to market.
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
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.
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.
Enter the number of Feeder contracts to hedge position.