The LRP-Lamb price index ended last week at $121.49 per cwt. This is up $6.28 from the index of $115.21 on September 16, 2013.
LRP-Lamb insurance price forecasts expiring September 23, 2013 were as follows:
| Date Offered | Policy | Expected Ending Value | Actual % of Expected |
| 6/24/2013 | 13-week | $97.80 | 124.2% |
| 5/6/2013 | 20-week | $90.31 | 134.5% |
| 3/25/2013 | 26-week | $96.67 | 125.7% |
| 12/24/2012 | 39-week | N/A | N/A |
The effective floor prices offered by LRP-Lamb coverage for policies expiring September 23, 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% |
| 6/24/2013 | 13-week | $97.80 | $90.913 | $87.272 | $82.892 | $78.175 |
| (1.997) | (0.748) | (0.238) | (0.065) | |||
| 5/6/2013 | 20-week | $90.31 | 82.962 | 79.936 | 76.198 | 72.041 |
| (2.828) | (1.344) | (0.562) | (0.209) | |||
| 3/25/2013 | 26-week | $96.67 | 88.623 | 85.285 | 81.340 | 76.972 |
| (3.217) | (1.715) | (0.830) | (0.368) | |||
| 12/24/2012 | 39-week | N/A | N/A | N/A | N/A | N/A |
| N/A | N/A | N/A | N/A | |||
N/A – Not Available
None of the LRP-Lamb insurance offerings expiring on September 23, 2013 offered protection above the actual ending price index of $121.49. After the fact, the best a person could have done was not to insure lambs for delivery on or about September 23, 2013. However, as always, one should consider the protection the insurance provides in terms of risk management.
Leave a Reply