Monthly Archives: November 2013

LRP-Lamb Market Report 11 November 2013

The LRP-Lamb price index ended last week at $135.29 per cwt. This is down $0.47 from the index of $135.76 on November 4, 2013.

LRP-Lamb insurance price forecasts expiring November 11, 2013 were as follows:

Date Offered Policy Expected Ending Value Actual % of Expected
8/12/2013 13-week $93.27 145.1%
6/24/2013 20-week $95.09 142.3%
5/13/2013 26-week $77.27 175.1%
2/11/2013 39-week $104.81 129.1%

The effective floor prices offered by LRP-Lamb coverage for policies expiring November 11, 2013 were as follows:

Effective Floor Price (Coverage Price – Producer Premium)
(Producer Premium per cwt.)
Date Offered Policy Expected Ending Value 95% 90% 85% 80%
8/12/2013 13-week $93.27 $86.706 $83.227 $79.054 $74.557
(1.904) (0.713) (0.226) (0.063)
6/24/2013 20-week $95.09 87.361 84.165 80.238 75.850
(2.979) (1.415) (0.592) (0.220)
5/13/2013 26-week $77.27 70.838 68.170 65.016 61.526
(2.572) (1.370) (0.664) (0.294)
2/11/2013 39-week $104.81 94.696 91.332 87.354 82.902
(4.874) (2.998) (1.736) (0.948)

None of the LRP-Lamb insurance offerings expiring on November 11, 2013 offered protection above the actual ending price index of $135.29. After the fact, the best a person could have done was not to insure lambs for delivery on or about November 11, 2013. However, as always, one should consider the protection the insurance provides in terms of risk management.

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