Comparison of Hedging Cost with Other Variable Input Costs

Recent spikes in commodity prices have led to higher margin amounts and option premiums. For the most part, producers have always attributed their lack of use in reducing risk via futures and options markets to the high cost associated with the use of these markets. This study determines the relative costs of hedging with futures and options and compares these with the costs of other variable inputs. We find that with the exception of hedging corn with both tools and soybeans with options the costs of hedging has only increased at roughly the same rate as all other inputs.Hedging costs, Costs of production, Risk management, Agribusiness, Agricultural Finance, Demand and Price Analysis, Farm Management, Marketing, Risk and Uncertainty,

Producer Perceptions of Corn, Soybean and Cotton Price Risk

Risk is an inevitable part of agricultural production and all producers face various forms of risk. This study used the subjective price expectations and price distributions of survey participants to determine how producer’s expectations compare with that of the market. Data used for this study were gathered through survey responses from Mississippi State University Extension meeting and workshop participants. Individual respondent’s discreet stated price and price distribution information was fitted to a continuous distribution and an implied mean and standard deviation was determined. This was compared to market price and price risk data. Participants largely over-estimated price. Individual volatilities resulting from each fitted distribution were lower than that implied by the market.price risk, price perception, subjective probability elicitation, Production Economics, Q13,

Factors Influencing Marketing Margins in Cattle and Beef Markets

Livestock Production/Industries,

Optimal Marketing Strategies for Southeastern Cattle Producers

Hedging, Cattle, Simulation, Expected Utility, Agribusiness, Farm Management, Livestock Production/Industries, Marketing, Q13,

Thermocline management of stratified tanks for heat storage

Stratified tanks are useful for maximising the thermal energy efficiency of non-continuous and semi-continuous processes. Liquid at two or more dissimilar temperatures is stored within the same tank to provide a buffer for variations in heating and cooling loads. Control of the thermocline between the hot and cold fluid regions is needed to minimise thermocline growth and maximise operation of the storage tank. An experimental programme using a scale model of an industrial stratified tank (aspect ratio 3.5) and Perspex tank (aspect ratio 8.2) is reported. The behaviour and growth of the hot-cold thermocline under various operating conditions is presented. A siphoning method to re-establish the thermocline without interrupting the use of the tank is tested. Siphoning of the thermocline region from either 20%, 50% or 80% of the tank height is an effective strategy for uninterrupted interface re-establishment. However, the rate and position of siphoning and the load balance of the exit streams are critical variables for minimising the time for effective re-establishment of the two temperature zones

WinGEMS modelling and pinch analysis of a paper machine for utility reduction

A multi-ply paper machine process model was developed using WinGEMS and the stream data produced was used to conduct a pinch analysis. The product stream was excluded from the analysis and the composite curves display the enthalpy contained only in the inputs and outputs to the various sections of the paper machine. The pinch point for the overall paper machine was 55.9 C while the minimum hot utility target was 170 MW. Occurrences of cross pinch heat transfer were identified and discussed. Heat recovery options for heating of the fresh water showers, using waste heat streams were investigated. Steam savings of over 14 MW could be achieved by recovering heat from two waste streams that currently go directly to drain with no heat recovery taking place. The use of pinch analysis for utilities targeting under non-continuous conditions was examined. Finally, the feasibility of integrating non-conventional technologies, such as heat storage, is discussed

Valuing Fed Cattle Using Slice Shear Force Measurements

Marketing fed cattle using grid pricing has become a popluar way to sell cattle. One of the most important beef characteristics, according to consumers, is beef tenderness. USDA quality grades are poor predictors of meat tenderness. However, mechanical shear force does objectively measure tenderness. This study illustrates how problematic USDA quality grades are at assessing accurate beef tenderness and proposes and evaluates a tenderness-based valuation system based on slice shear force technology. We show that cattle of all quality grades are substantially over- or under-valued when using a grid realtive to a tenderness-based valuation system.Marketing,

Valuing Fed Cattle Using Objective Tenderness Measures

Beef tenderness is critical in consumer satisfaction with beef steak products. Current fed cattle valuation systems do not differentiate carcasses based upon tenderness variation. However, considerable research indicates consumers are willing to pay more for tender relative to tough beef steak. This article develops a tenderness-augmentation to current fed cattle grid pricing systems. Using a large set of actual carcasses, we determine that a tenderness-augmented price grid would reorder fed cattle value by on average nearly $5.00/cwt dressed relative to current valuation methods. Substantial opportunity is present to improve beef tenderness through new price signals to producers.beef quality, meat tenderness, cattle value, cattle price, Agribusiness, Farm Management, Food Consumption/Nutrition/Food Safety, Livestock Production/Industries, Q11, Q13, M31,