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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