RCM Ag Services’ Mike Merucci joins ST Genetics podcast to discuss Dairy Hedging

November 17, 2023 rcmagserv Agriculture, CME, Dairy 0 comment Like

RCM Ag Services’ Mike Merucci joins ST Genetics podcast to discuss Dairy Hedging

In the ST Talks podcast episode, Laura Demer explores the topic of milk hedging with Pat Carroll, a partner at Geno Source, a 5,000 cow dairy, and Mike Merucci, head of the Dairy Division for RCM Ag Services.

Mike Merucci underscores the necessity for dairy producers to establish a risk management plan, understand their production costs, and align long term goals. He highlights the advantages of insurance products like Dairy Revenue Protection (DRP), especially for those less familiar with futures and options trading.

Pat continues by emphasizing the significance of starting slowly in milk hedging, gradually increasing involvement as your understanding deepens. Carroll discusses the strategy of using DRP to reduce the overall cost of protecting milk, including additional methods like selling calls to finance DRP purchases.

Mike further stresses the importance of ongoing conversations with clients, adapting strategies to changing market conditions, and the need for producers to revisit and adjust plans over time. Those interested in learning more about milk hedging and risk management can reach Mike at his website mmumanagement.com.

Check out the full interview below.

Tags

Ag Commodities agriculture Dairy dairy hedging Milk Milk hedging RCM Ag Services

Disclaimers
RCM Ag Services is a registered DBA of Reliance Capital Markets II LLC. Trading futures, options on futures, and retail off-exchange foreign currency transactions are complex and involve substantial risk of loss and are not suitable for all investors. Loss-limiting strategies such as stop loss orders may not be effective because market conditions or technological issues may make it impossible to execute such orders. Likewise, strategies using combinations of options and/or futures positions such as “spread” or “straddle” trades may be just as risky as simple long and short positions. There are no guarantees of profit. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge and financial resources. You may lose all or more than your initial investment. You should not rely on any of the information herein as a substitute for the exercise of your own skill and judgment in making such a decision on the appropriateness of such investments. Opinions, market data and recommendations are subject to change without notice. Reliance Capital Markets II LLC shall not be held responsible for any actions taken based on this website or attached links. Parties acting on this electronic communication are responsible for their own actions. Past performance is not necessarily indicative of future results.

Disclaimer

RCM Ag Services is a registered DBA of Reliance Capital Markets II LLC. Trading futures, options on futures, and retail off-exchange foreign currency transactions are complex and involve substantial risk of loss and are not suitable for all investors. Loss-limiting strategies such as stop loss orders may not be effective because market conditions or technological issues may make it impossible to execute such orders. Likewise, strategies using combinations of options and/or futures positions such as “spread” or “straddle” trades may be just as risky as simple long and short positions. There are no guarantees of profit. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge and financial resources. You may lose all or more than your initial investment. You should not rely on any of the information herein as a substitute for the exercise of your own skill and judgment in making such a decision on the appropriateness of such investments. Opinions, market data and recommendations are subject to change without notice. Reliance Capital Markets II LLC shall not be held responsible for any actions taken based on this website or attached links. Parties acting on this electronic communication are responsible for their own actions. Past performance is not necessarily indicative of future results.