Producers should stay on top of the futures market, monitor excessive premiums, and use sharp rallies to lock in summer marketings. Given the fact we have more hogs than a year ago but less than the trade expected, the winter contracts seem under priced to the summer months. So patience is advised before establishing any hedging strategies for that time period. It might be advised that livestock producers consider the purchase of a put option to protect current inventory, in case the next scare is the real thing. Obviously, it would decimate the livestock industry and send markets into a tailspin.
Information is in no way guaranteed.
Futures trading always involves a certain degree of risk.