|
|
Weekly Market Recommendations 05/22/13 2:37:52 PM
Every Friday, the Equity Commodities team publishes a brief summary of our analysis of the week’s trading, and accompanying recommendations for agricultural producers. In addition to this commentary we also publish a weekly update of the Equity Livestock Sales Association Cattle Feeding Index (ELSACFI).
The ELSACFI is a tool to help cattle feeders manage risk, and plan for the future. The ELSACFI uses listed futures contracts combined with our proprietary cattle-on-feed model to estimate a per-head gross margin for cattle feeders – or the amount of money left over to cover all other expenses and pay the producer. It does so by subtracting the cost of feeder cattle and corn inputs from the revenue generated by expected fat cattle sales. The weekly publication contains two parts; the first is a price chart of a selected set of contracts the index through time, the second is a comparison of different cycles. While the index as published uses a standardized set of inputs in the name of consistency, our proprietary model is not constrained to these standardized inputs and was designed to be customizable for the individual producer.
Producers Commodities LLC
401 Commerce Avenue
Baraboo, WI 53913
Email: commodities@equitycoop.com
Phone: 800-362-3989
Fax: 608-356-0117
|
|
|
