Monthly Archives: November 2013

LRP-Lamb Market Report 4 November 2013

The LRP-Lamb price index ended last week at $135.76 per cwt. This is up $13.56 from the index of $122.20 on September 30, 2013.

LRP-Lamb insurance price forecasts expiring November 4, 2013 were as follows:

Date Offered Policy Expected Ending Value Actual % of Expected
8/5/2013 13-week $95.07 142.8%
6/17/2013 20-week $97.24 139.6%
5/4/2013 26-week $80.43 168.8%
2/4/2013 39-week $108.89 124.7%

The effective floor prices offered by LRP-Lamb coverage for policies expiring November 4, 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%
8/5/2013 13-week $95.07 $88.379 $84.833 $80.579 $75.996
(1.941) (0.727) (0.231) (0.064)
6/17/2013 20-week $97.24 89.334 86.072 82.044 77.566
(3.046) (1.448) (0.606) (0.224)
5/4/2013 26-week $80.43 73.733 70.963 67.679 64.034
(2.677) (1.427) (0.691) (0.306)
2/4/2013 39-week $108.89 98.387 94.885 90.757 86.125
(5.063) (3.115) (1.803) (0.985)

None of the LRP-Lamb insurance offerings expiring on November 4, 2013 offered protection above the actual ending price index of $135.76. After the fact, the best a person could have done was not to insure lambs for delivery on or about November 4, 2013. However, as always, one should consider the protection the insurance provides in terms of risk management.

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