EVALUATING THE HEDGING POTENTIAL OF THE LEAN HOG FUTURES CONTRACT

The lean hog futures contract is replacing the live hog futures contract at the Chicago Mercantile Exchange beginning with the February 1997 contract. The lean hog futures will be cash settled based on a broad-based lean hog price index, eliminating terminal markets from the price discovery process. Using this index over a twenty-month period as a proxy for the lean hog futures price, this paper compares the hedging effectiveness of the live hog futures contract to the hedging potential of the lean hog futures contract for cash live hogs as well as four cash meat cuts. Frozen pork bellies futures are also examined for the cash meats. Both long-term and short-term hedges are simulated, using the minimum-variance approach, which utilizes only unconditional information, and the Myers-Thompson approach that incorporates conditional information. The results show that the lean hog futures should perform better than either the live hog or the frozen pork bellies futures as a hedging instrument for Omaha cash hogs and cash loins. The strongest evidence of this is for the short-term hedging of cash hogs. For the other three meats, no futures contract demonstrated a clear hedging advantage.Marketing,

An Introduction to GIS

This presentation discusses: What is GIS; GIS Uses; GIS Map Layers; GIS Layer Features and Attributes; GIS Surfaces; Zip Code Shape Files; Downloading Census Data; Census Data and GIS; Combining Two Excel Documents; Joining Tables; Using Symbology to Illustrate Data on a Map; and Creating A Final Map

Ridge-Tillage: Advantages and Disadvantages

Ridge-Till is a crop production system that has become increasingly popular with grain producers in some areas of the mid-west. This unique tillage system may provide some Kentucky farmers with an alternative method of planting. Limited information on the adaptability of ridge-till on Kentucky soils and climatic conditions make it important that growers investigate the system thoroughly to determine how it would fit into their operation before deciding to change. Ridge-till involves planting on elevated rows that remain undisturbed after establishment. One or more cultivations are then made during the early part of each growing season to improve weed control, allow the soil to dry and warm faster, and to maintain the ridge for future planting. Most of the current information on ridge-till has been generated from studies conducted in the north and mid-west. Based on this research, ridge-till appears to be most suited for the poorly drained soils on 0-2% slope. Some advantages and disadvantages of ridgetillage are discussed below

Bermudagrass in Kentucky

Interest in bermudagrass [Cynodon dactylon (L.) Pers] is increasing in Kentucky as livestock producers continue their search for warm-season perennial forages capable of filling in the mid-summer growth slump we commonly experience with our traditional cool-season grasses. This is partially due to the recent availability of seeded bermudagrass varieties with improved winter hardiness thereby reducing establishment cost and increasing the odds of success

Storing Alfalfa as Round Bale Silage

Hay is the most popular method for storing alfalfa because it stores well for long periods and is better suited to cash sale and transportation than silage. However, silage may be a suitable option when and/or where hay curing is difficult. Due to numerous improvements in baling and wrapping equipment, it is possible to make high quality round bale silage using long (unchopped) alfalfa crops

Options for Summer Grazing

Summer is the time during the growing season when shortages of forage most often occur in Kentucky. The summer of 2007 will long be remembered as one the warmest and driest in recent years and cause many livestock producers to evaluate their current forage systems. Most Kentucky pastures are predominately cool-season grasses such as tall fescue, orchardgrass and bluegrass. During the historically hot, dry periods in July and August, these species produce very little growth and can quickly become overgrazed. At this point, some producers have no alternative except to buy feed or begin feeding stored forage intended for winter feeding. According to Ag Economist, grazing is the cheapest way to feed livestock and the difference between profit and loss in the livestock business can usually be related back to the producer’s ability to grow his own feed

Co-Grazing Beef Cattle and Goats in Kentucky

A two season grazing study of mixed (goats and beef cattle) species was conducted in 2006 and 2008 at Sebastian Farms in Breathitt County KY. The objective of this study was to determine if the order of mixed species grazing affected beef cattle and goat weight gain and goat exposure to the barber pole worm (Haemonchus contortus) in a rotational grazing system. In this study, two co-grazing management strategies were tested. In treatment 1, goats and cattle were rotationally grazed together. In treatment 2, goats rotated through pastures as first grazers followed by cattle. Each co-grazing treatment was assigned a set of four pastures similar in size, terrain and plant species composition. The stocking rate for each treatment was approximately 1.2 acres per animal unit (1 animal unit = 1,000 lbs live weight). Animal performance data was collected every 30 days during the grazing season. In 2007, the study was suspended due to extreme drought conditions. In 2006 and 2008 goat weight gain and FAMACHA scores were not affected by grazing treatment. In 2006, cattle weight gain was slightly higher for cows grazing with goats. In contrast, cows following goats in 2008 had the greatest weight gain. Based on field observations, beef cattle and goats were compatible grazers and no herd health issues were related to mixed species grazing during this study

Update on Ridge-Tillage in Kentucky

Grain crop producers in Kentucky are constantly evaluating various tillage systems that will best fit their particular cropping environment. One such tillage system that has shown some promise primarily in the mid-west is a system referred to as ridge-tillage. Ridge-till is basically a system by which a grain producer plants his crop on an elevated row that is maintained each year during cultivation for week control. The same ridge is re-used year after year thereby developing a controlled traffic pattern. Since the cultivation procedure is also recommended for maintaining the ridge, many ridge-till farmers have reduced their herbicide cost by spraying only a small band over the row and relying on the cultivation for weed control between the ridges

Trastuzumab (Herceptin (R)): Monoclonal antibody in the treatment of HER2/neu-overexpressing breast cancer in the metastatic and (neo)adjuvant situation

Trastuzumab (Herceptin (R)) is a humanized monoclonal antibody that specifically targets HER2/neu (human epidermal growth factor receptor-2) breast cancer cells, which are overexpressed in about 25-30% of breast carcinomas. After phase I and II trials, several phase III studies of trastuzumab alone or in combination with various chemotherapies were conducted. Patients with HER2/neu overexpression levels of 3+ determined by immunohistochemical assay or gene amplification (fluorescence in situ hybridization) derive most clinical benefit from trastuzumab. Taking into consideration efficacy and side effect profile, the combination of trastuzumab and paclitaxel showed an improvement of all clinical parameters, including overall survival, for the first time in the history of palliative breast cancer therapy. The application of trastuzumab has meanwhile become an established part of systemic therapy of metastastic breast cancer, and excellent data of its application in the adjuvant setting now exist (NSABP-B31, NCCTG-N9831, HERA), with significantly better relapse-free survival in the treatment arms with trastuzumab. Ongoing trials investigate the role of trastuzumab in the neoadjuvant setting. Trastuzumab is generally well tolerated. Cardiotoxicity is the main concern, thus monitoring of cardiac function is recommended