The Market's Fine Print

In Praise of Texas Hedgers

If the extra layers of risk involved in raising livestock elevate the entire cattle feeding fraternity to a class of riverboat gamblers, there still remains some particularly aggressive dice-throwers within this reckless club that stress always Lady Luck to the very max. We call these wild lovers of the double down "Texas hedgers." (Public domain photo courtesy of Wikipedia)
If the extra layers of risk involved in raising livestock elevate the entire cattle feeding fraternity to a class of riverboat gamblers, there still remains some particularly aggressive dice-throwers within this reckless club that stress always Lady Luck to the very max. We call these wild lovers of the double down "Texas hedgers." (Public domain photo courtesy of Wikipedia)
The scary disparity between unavoidable (i.e., if you're going to play the cattle feeding game) fourth-quarter breakevens and the deep discount of December live futures means that the habitual "Texas hedger" will be recast as the paragon of risk management.

Subscriber-Only Content

To read the Full Story, upgrade your account to a FREE trial of MyDTN today.

  • Exclusive access to comprehensive, customized insight anytime, anywhere
  • If you're a Community user, all of your settings will transfer into your trial
Start your free MyDTN demo 
P[L2] D[728x90] M[320x50] OOP[F] ADUNIT[] T[]

P[R1] D[300x250] M[300x250] OOP[F] ADUNIT[] T[]

P[R2] D[300x250] M[320x50] OOP[F] ADUNIT[] T[]

DIM[1x3] LBL[] SEL[] IDX[] TMPL[standalone] T[]

P[R3] D[300x250] M[0x0] OOP[F] ADUNIT[] T[]