MARIAPOLIS, Man. (Staff) -Manitoba Pork is telling producers not to go whole hog into its new forward price contract.
Sales manager Perry Mohr recommends that farmers using the program limit their advance selling to one half of their projected production to ensure they can fulfil their contracts and in case the spot price turns out to be higher than the futures price.
Multiple contracts
Mohr also suggested producers average their costs by buying multiple contracts for a given month.
For example, if a farmer sells 200 hogs a month and forward-sells half of them, Mohr said the farmer could buy four contracts of 25 hogs to spread out the risk.
However, he said the decision is up to the producer and after Feb. 7, he will not be giving any advice or recommendations.
