Date of this Version
Several corn hedging scenarios involving a combination of cash and futures market transactions were evaluated for calf-fed and yearling production systems. All yearling corn hedging scenarios assessed were effective in only slightly reducing profit risk, while the calf-fed corn hedging scenario actually increased profit risk. Calf-fed and yearling corn hedging scenarios generally generated positive average returns to hedging by lowering net corn prices. The yearling corn hedging scenarios initiated closer to feedlot placement were associated with greater average profits as compared to those hedges initiated when yearlings were initially purchased.