Morning Comments
Wed, Sep 4, 2024 at 01:42 PM UTC
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.
Explore meats and livestock services
OTC trading
Leverage our meats and livestock OTC trading expertise for customized hedging options tailored to your operation.
Meats and livestock consulting
High-touch consulting and advisory services employing hedging strategies like live cattle futures to mitigate risk and improve margins.
Livestock insurance
Utilize USDA dairy and livestock insurance programs and proven risk management strategies to protect revenue and lock in potential profits.
Meats and livestock market insights
Access key inventory, production and sales and market data, along with critical market insights for the beef and pork markets.
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.
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.
Our clients
Our Meats and Livestock group specializes in offering customized hedging solutions that best align with your business requirements and contribute to your long-term success.
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Livestock producersWe help cattle, swine and poultry producers manage their profit margins with a comprehensive suite of risk management solutions, including full-service consulting, futures, customized OTC products and more. -
Food & beverageWe specialize in offering customized livestock swaps and provide tailored hedging solutions that are pivotal for our food and beverage clients to effectively manage price risk. -
Livestock and meat processorsWe help livestock and meat processors who encounter challenges in managing margin risk with customized OTC products that better match your business needs.
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.
Lessons from the Farm: US Food and Dairy
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 relationships and trust with his clients.
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
Meats and livestock Market Intelligence
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Tue, Sep 3, 2024 at 01:35 PM UTC
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FAQ
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.
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.
StoneX: We open markets
Our market expertise, advanced platforms, global reach, culture of full transparency and commitment to our clients’ success all set us apart in the financial marketplace.
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GlobalityWith access to 36+ derivatives exchanges, 180+ foreign exchange markets, nearly every global securities marketplace and numerous bi-lateral liquidity venues, StoneX’s digital network and deep relationships can take clients anywhere they want to go.
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TransparencyAs a publicly traded company meeting the highest standards of regulatory compliance in the markets we serve; our financials and record of accomplishment are matters of public record. StoneX’s commitment to “doing the right thing over the easy thing” sets us apart in the industry and helps us build respect, client trust and new partnerships.
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ExpertiseFrom our proprietary Market Intelligence platform, to “boots on the ground” expertise from award-winning traders and professionals, we connect our clients directly to actionable insights they can use to make more informed decisions and achieve their goals in the global markets.
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.
StoneX Financial Pte. Ltd. ("SFP") (Co. Reg. No 201130598R) is regulated by Monetary Authority of Singapore and holds a Capital Markets Services Licence (CMS100476) for Dealing in Securities, Collective Investment Schemes, Exchange-Traded Derivatives Contracts, Over-the-Counter Derivatives Contracts, and Spot Foreign Exchange Contracts for the Purposes of Leveraged Foreign Exchange Trading, is an Exempt Financial Advisor under the Financial Advisors Act 2001, and is a Major Payments Institution (PS20200625) under the Payment Services Act 2019 for Cross Border Money Transfers.
StoneX Financial (HK) Limited ("SHK") (CE No.: BCQ152) is regulated by the Hong Kong Securities and Futures Commission for Dealing in Securities and Dealing in Futures Contracts.
SFP acts as an appointed agent for SFL's payment services business.