Forward Contracts have been available in the cattle

industry for years—and for good reason. After all, when purchase costs are known and the cost to put on weight is known it makes sense to ensure that the end price is also known.

 

But when a variable climate and live animals are thrown into the mix the traditional forward contract can create more risk than it removes.

· What if the cattle don’t meet the specifications?

· What if they are not ready in time?

· What if they have to be sold elsewhere before they are ready?

· What if it doesn’t rain?

 

That is where the Platinum Agribusiness Indicator Contract comes in. You still get a fixed forward price—but the difference is that your price is based on an indicator. And once your cattle are ready to go they are sold to the best market on the day. This means that:

· You still get protection from falling prices;

· You don’t have to meet any set specifications; and

· Your final price will still reflect the final value of your cattle.

 

 

 

Always available.

Drought Protection.

No delivery risk.

Lock in margins.

Simple. Easy. Effective.