LRP-Lamb Market Report 15 July 2013
The LRP-Lamb price index ended last week at $115.08 per cwt. This is up $2.56 from last week’s index of $112.52.
LRP-Lamb insurance price forecasts expiring July 15, 2013 were as follows:
| Date Offered | Policy | Expected Ending Value | Actual % of Expected |
| 4/15/2013 | 13-week | $98.44 | 116.9% |
| 2/25/2013 | 20-week | $100.85 | 114.1% |
| 1/14/2013 | 26-week | $119.89 | 96.0% |
| 10/15/2012 | 39-week | $135.73 | 84.8% |
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% |
| 4/15/2013 | 13-week | $98.44 | $91.210 | $87.734 | $83.396 | $78.674 |
| (2.310) | (0.866) | (0.274) | (0.076) | |||
| 2/25/2013 | 20-week | $100.85 | 92.179 | 89.035 | 84.998 | 80.412 |
| (3.631) | (1.725) | (0.722) | (0.268) | |||
| 1/14/2013 | 26-week | $119.89 | 109.313 | 105.456 | 100.727 | 95.385 |
| (4.587) | (2.444) | (1.183) | (0.525) | |||
| 10/15/2012 | 39-week | $135.73 | 121.686 | 117.697 | 112.787 | 107.168 |
| (7.254) | (4.463) | (2.583) | (1.412) | |||
Only the 39-week expiring insurance coverage will pay any indemnity and it will pay an indemnity at the top three coverage levels. The net effective floor prices for the various coverage levels of the expiring 39-week contracts issuing an indemnity ranged from $121.69 per cwt. to $112.79 per cwt. with the up-front premium costs ranging from $7.25 per cwt. to $2.58 per cwt.
LRP-Lamb price insurance coverage offered on 15 July 2013 is as follows:
| Date Offered: 15 July 2013 | Effective Floor Price (Coverage Price – Premium) | |||||
| (Premium per cwt.) | ||||||
| Policy | End Date | Expected Ending Value | 95% | 90% | 85% | 80% |
| 13-week | 10/14/2013 | $88.82 | $82.296 | $79.159 | $75.252 | $70.992 |
| (2.084) | (0.781) | (0.248) | (0.068) | |||
| 20-week | 12/2/2013 | $82.61 | 75.506 | 72.937 | 69.629 | 65.871 |
| (2.974) | (1.413) | (0.591) | (0.219) | |||
| 26-week | 1/13/2014 | $81.10 | 73.938 | 71.337 | 68.13 | 64.525 |
| (3.102) | (1.653) | (0.80) | (0.355) | |||
| 39-week | 4/14/2014 | $104.09 | 93.326 | 90.258 | 86.499 | 82.187 |
| (5.564) | (3.422) | (1.981) | (1.083) | |||
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