![]() Doug is covered against a market decline into November of 600 lb steer calves falling below $218/cwt On FebruLPI offered coverage of $218/cwt for a premium of $5.98/cwt. *Auction market sales data will not be disclosed due to contractual obligations.ĭoug has 150 calves that he is going to Market in November, they will average 650lbs.ġ50 head*650lbs = 97,500lbs or 975cwt to insure.ĭoug wants at least $2/lbs ($200/cwt). A weekly average is published using all eligible sale data from Monday to Saturday.This ensures the index reflects current market conditions. If there are fewer than five lots sold during a sale, data is rolled forward to the next sale day. The average price is calculated and lots with values 12 per cent greater or lower than the average daily price are excluded. Sale data will be included if there are five or more lots sold in one particular sale.To ensure the settlement index represents an average quality steer, animals sold in one or two-head lots are not included.Collecting data electronically from online sales and auction market sales information for steers in the weight range of 550 to 650 pounds.The settlement index is representative of the average price of a 600 pound steer in any given week. From this data, a settlement index is made publicly available on the following Monday (Tuesday when Monday is a statutory holiday). The LPI-Calf program creates a settlement index based on weekly data collected from from electronic and auction market sales across western Canada. The current price of barley is compared to the five-year-average price of barley.īy considering each of these factors, producers have market-driven, forward-price coverage to help manage the risk of marketing calves September through February. The current spread is compared to the five-year-average spread for the policy length being purchased. ![]() This calculation assumes the basis will eventually return to the three-year average but also takes into account the current cash to futures basis.Ī spread is calculated by subtracting the feeder price from the calf price. ![]()
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