Patent ID: 8341058

Claim:
A method for modifying a portfolio having respective quantities of a plurality of different meat cut types (MCT) of an animal, the method comprising the steps implemented on a processor of: accessing portfolio information of the portfolio stored in a memory, the portfolio information including a first quantity of a first MCT and a second quantity of a second MCT, the first MCT having a first predicted future price for a first future time period (FTP) and the second MCT having a second predicted future price for a second FTP, the first and second MCTs being part of the plurality of different MCTs, the first predicted future price being a result from a first model expressed as a relationship between historical market prices of the first MCT and live animal futures contracts; determining comparison data containing historical first market prices of the first MCT and historical second market prices of the second MCT for a selected historical time period; determining a correlation value between the first MCT and the second MCT using the comparison and the first quantity and the second quantity, the correlation value representing a relative movement in price of the first MCT to the second MCT for the first and second FTP; analyzing, by a computer, the correlation value and adjusting, by the computer, a parameter of the price model used in determining the first predicted future price in order to modify a value of a first price premium associated with the first predicted future price, the first price premium representing a monetary value in exchange for assuming a risk that the first predicted future price may be different from the eventual market price of the first MCT when reaching the first FTP; and sending, by the computer, the modified value of the first price premium for presentation to a member of the portfolio for promoting either an increase or a decrease in the quantity of the first MCT in the portfolio.