Perspective: Morning Commentary for December 1
Today 2:23 PM
Meats and livestock risk management solutions tailored to your business
StoneX assists clients in improving margins with customizable livestock OTC products, futures/options trading and expert advisory.
Manage risk.
Maximize margins.
Outperform.
The livestock and protein industry faces constant price and business margin volatility. StoneX’s Livestock and Meats group has the expertise to help reduce price risk across all segments of the supply chain, from producers and processors to manufacturers and end users.
As a trusted meats and livestock advisor and dedicated partner, we assist you with identifying market exposure, and connect you with tailored financial solutions such as exchange-traded livestock futures/options and OTC products. Our goal is to help you manage meat and livestock commodity price risk, maximize your business strength and outperform the competition.
Expertise and support for the entire supply chain
At StoneX, we provide high-touch service and expert advisory across the entire meat and livestock supply chain – from production to consumption. Our clients include hog and cattle producers, processors, feed lot operations and packing plants, all the way to restaurants, grocers and retail outlets. Since every client’s needs are different, we tailor our approach based on your unique business requirements and market exposure.
Meat buyers and food service operators: Manage risk with customized products
Some of these livestock products include:
- Pork carcass cutout
- Pork bellies
- Hams
- Pork and beef trimmings
- Pork butt primal
- Pork back ribs
Wholesalers, distributors, food service operators and retail buyers have all faced increased volatility and higher prices in recent years. In many cases, suppliers have shifted the price risk of meats and commodities back onto you, the buyer.
That’s where StoneX comes in. We offer a full suite of meat and livestock swaps that match your company’s specific price risk and have the flexibility to be customized to your needs, including volumes, tenors, settlement styles and more. As one of the first few non-bank swap dealers to offer this product line, we are uniquely positioned to connect you with products tailored to your business.
Livestock and meat processors:
Manage margin risk with specialized OTC products
Livestock and meat processors face a unique challenge managing margin risk associated with buying inputs and marketing outputs that may not be tradable on a futures exchange. StoneX Markets offers a full suite of OTC products which may match your company’s specific price risk even better than existing standardized livestock futures products. To learn more about how StoneX can help you mitigate price risk and boost margins, contact our team below.
Livestock producers: The expertise and market insights you need to succeed
With extremely volatile margins, cattle, swine and poultry producers need a partner they can count on. StoneX’s livestock and meats experts help bring a more structured process to managing your profit margins.
We specialize in utilizing futures, options and OTC products to mitigate the risk associated with live cattle, feeder cattle, lean hog and many feed ingredients.
Full-service consulting and advisory
Assistance with strategy formation, market recommendations, record keeping and award-winning market intelligence.
Cattle basis swaps
Leverage basis swaps on regional cash cattle markets, offering you a way to manage basis without the disadvantages of a contract direct to the packer.
Farm Advantage mobile app
Essential ag market insights in the palm of your hand. Explore cash bids, premium weather, market intelligence, profit calculators and more.
Cattle and hog crush spreads
Our model uses specific ratios of inputs and outputs to protect your gross margins for your feeding period or production cycle.
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Commodity risk productsMitigate your exposure to commodity price volatility with StoneX's strategic risk products. -
Physical commoditiesStoneX’s global physical commodities team combines deep market expertise and insightful risk management analysis to help clients increase profitability. -
Physical contract hedgingDiscover how StoneX’s risk management programs can help you hedge against physical commodity risk and protect your bottom line. -
Derivatives marketNavigate the derivatives market confidently with StoneX's vast expertise.
Get the edge you need with Farm Advantage
Essential ag market insights in the palm of your hand. Explore cash bids, premium weather, market intelligence, profit calculators and more.
Why choose StoneX?
As a Fortune 100 financial services network (NASDAQ: SNEX) with roots in agriculture dating back a century, we deeply understand the needs of our clients – from producers all the way to end users. With a client-first mentality, we make it our priority to know the ins and outs of your business on a personal level and provide customized market solutions and expertise to help you manage volatility, control risk and improve margins.
Boots on the Ground: Grains (US)
Visit KJA Family Farms with StoneX’s Kyle Schrad, Vice President of Global Dairy and Food Operations, FCM-Division, as he discusses how lessons learned as a boy working on his family farm inform his understanding of how a boots on the ground perspective fosters trust.
Visit KJA Family Farms with StoneX’s Kyle Schrad, Vice President of Global Dairy and Food Operations, FCM-Division, as he discusses how lessons learned as a boy working on his family farm inform his understanding of how a boots on the ground perspective fosters trust.
Explore our ag offerings
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FAQs
What are livestock futures?
Livestock futures are a type of financial contract that enables investors to speculate on the future price of livestock commodities, such as cattle, hogs, and pork bellies. These contracts are traded on commodity futures exchanges and enable investors to lock in a price for the delivery of livestock at a future date.
Livestock futures are used by farmers, meat packers, processors and traders to hedge against the risks of price volatility in the livestock market. By locking in the price of a future delivery, these market participants can better manage their risks and plan their operations with greater certainty.
What is livestock risk protection?
Livestock Risk Protection (LRP) allows livestock businesses to acquire insurance coverage for their cattle, safeguarding them from unfavorable shifts in cattle market prices. This tool aims to sustain efficient management of financial performance and overall profitability.
StoneX’s price-risk management professionals work with you to optimize your LRP coverage to fit your business operations and needs. Contact us for more information.
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To learn more about how our customized financial solutions can help you stay one step ahead in the global markets, contact our team today.
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If you're an existing customer, please direct any inquiries to your StoneX sales team.
The trading of commodities and derivatives such as futures, options, and swaps involves substantial risk of loss and may not be suitable for all investors. Advisory services as well as the trading of futures and options is available through various subsidiaries of StoneX Group Inc. including but not limited to the FCM Division of StoneX Financial Inc. Public Disclosures for the FCM Division of StoneX Financial Inc. The trading of over-the-counter products or swaps is available through subsidiary StoneX Markets LLC to individuals or firms who qualify under CFTC rules as an eligible contract participant. Please click here for the full disclaimer.