Risk Management Programs
Feeders Preference
- Allows member access to CME Futures
- Full contracts based on 40,000 pounds for live cattle and lean hogs. Contracts based on 50,000 pounds for feeder cattle
- Mini contracts based on 20,000 pounds for live cattle and lean hogs. Mini contracts based on 25,000 pounds for feeder cattle
- Gain or loss on futures position is settled on livestock check
- Livestock sold through UPI
- UPI makes margin calls up to $150,000, upon approval
- Offers protection against significant price changes in volatile markets
- Enables producers to operate on fairly predictable margins
- Rate discounts if you have a loan and/or a livestock marketing agreement
Merchants Plus
Merchants Plus is a managed product that aids you, the producers, in pricing a portion of your expected livestock production. When you commit production to the program, the futures portion of your risk will be managed by a professional team drawing on years of experience and sophisticated trade execution capabilities.
Enrolling production into the program takes your guesswork and emotion out of pricing decisions, offers an alternative to the spot market. UPI partners with FCStone Merchant Services, LLC, an established, trusted, transparent Agribusiness service provider.
Floor & More Service
The market can be as unpredictable as the weather...but our Floor & More Service can help you minimize risk while maximizing profit!
This service will establish an estimated minimum value for your commodities while allowing you to participate in potential higher prices for a fixed amount of time. To ensure you get the right coverage for your farm, we can help you tailor the contract to your specific goals and risk tolerances.
How do you benefit?
- You can establish a floor futures price while still having the option to participate in potential higher prices.
- This program can be used with various contract types including Feeders Preference futures agreements and packer contracts.
- UPI is here to help you understand the process every step of the way.
