Question: Let us assume that it is March 5 , 2 0 2 5 , and you run a feedlot operation ( VanderWal Farms ) in

Let us assume that it is March 5,2025, and you run a feedlot operation (VanderWal Farms) in Volga, SD. Assume your feed inventory is adequate until August 25,2025. At that time, you estimate that you will need to purchase 25,000 bushels of corn in the cash market to feed your expected inventory of cattle after August 25th . You are worried about rising corn prices, and you decide to implement a hedge using Futures Contracts for corn on March 5,2025. To analyze this hedging problem, you will need to gather commodity market information, and this information will provide you the answers to the questions below. Show all work for all answers you need to calculate. No work, No Points! If you work as a group. Then turn in your group answers and indicate the group you are in.
4. What is futures market price of corn (at the close) for the contract month your selected when you set your hedge at the market closing price on March 5,2025?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!