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.
Leave a Reply