LRP-Lamb Market Report 17 June 2013

The LRP-Lamb price index ended the week at $110.42 per cwt. This is down $1.69 from last week’s index of $112.11.

LRP-Lamb insurance price forecasts expiring June 14, 2013 were as follows:

Date Offered	Policy	Expected Ending Value	Actual % of Expected
3/18/2013	13-week	$91.23	121.0%
1/28/2013	20-week	$103.58	106.6%
12/17/2012	26-week	$116.55	94.7%
9/17/2012	39-week	$161.85	68.2%

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

			Effective Floor Price (Coverage Price – Premium)
			(Premium per cwt.)
Date Offered	Policy	Expected Ending Value	95%	90%	85%	80%
3/18/2013	13-week	$91.23	$84.529	$81.308	$77.296	$72.910
			(2.141)	(0.802)	(0.254)	(0.070)
1/28/2013	20-week	$103.58	94.671	91.448	87.299	82.585
			(3.729)	(1.772)	(0.741)	(0.275)
12/17/2012	26-week	$116.55	106.261	102.524	97.920	92.730
			(4.459)	(2.376)	(1.150)	(0.510)
9/17/2012	39-week	$161.85	145.109	140.339	134.490	127.797
			(8.651)	(5.321)	(3.080)	(1.683)

The expiring 39-week policies provided an indemnity payment at all four of the offered coverage levels 95%, 90%, 85%, and 80% with the effective floor prices in effect and providing protection ranging from $34.689 per cwt. to $17.377 per cwt. after premium payment deductions.

The expiring 26-week policy provided a small indemnity of $0.30 per cwt. at the 95% coverage level but not enough to cover the premium payment.

LRP-Lamb price insurance coverage offered on 17 June 2013 is as follows:

Date Offered: 17 June 2013			Effective Floor Price (Coverage Price – Premium)
			(Premium per cwt.)
Policy	End Date	Expected Ending Value	95%	90%	85%	80%
13-week	9/16/2013	$96.56	$89.464	$86.051	$81.811	$77.176
			(2.266)	(0.849)	(0.269)	(0.074)
20-week	11/4/2013	$97.24	88.879	85.856	81.696	77.532
			(3.501)	(1.664)	(0.696)	(0.258)
26-week	12/16/2013	$89.74	81.817	78.941	75.394	71.397
			(3.433)	(1.829)	(0.886)	(0.393)
39-week	3/17/2014	$116.62	104.557	101.126	96.910	92.087
			(6.233)	(3.834)	(2.220)	(1.213)