|
- ROBERT JOHNSON joined Frontier Risk Management in
1994 and currently serves as an Account Executive and Branch Manager of
the Kansas City Office. His clients are predominantly cattle feeders,
but also include order buyers, ranchers, processors, and pork producers.
He works with clients to hedge livestock and production inputs. Hedging
strategies are formulated by evaluating risk exposure and risk tolerance
for each client within the current price structure taking into account
market analysis and outlook. Rob assists clients with option analysis
and how they can be used in hedging programs, and most importantly, how
to weigh risk protection versus cost. Rob relies on Frontier’s Research
Department as well as his own market analysis to examine seasonality,
spreads, and changes in demand.
- Rob offers 15 years of Cattle Crush trading experience.
The Crush is a futures spread between feeder cattle, corn, and live
cattle. Not only is the crush useful as a trading tool, but it is also a
good barometer of the overall profit opportunity for placing cattle on
feed in deferred months. Rob has helped his clientele incorporate the
Crush into their overall hedging approach.
|
|
|
- In 1997, Rob along with Hank Rogers developed the Total
Risk Management Program, a platform for measuring and tracking risk. Now
known as TRuMP, the program continually monitors risk by
marking-to-market not only futures and options positions, but also cash
market positions. Through the use of this program, clients are able to
accurately and in real-time monitor hedge ratios, net positions, and
profitability by marketing period and in total. Comparative hedging
strategies are also provided as well as a sensitivity analysis for
profits and hedge ratios to price shocks in the market. Closeout
information is collected and compared to projections so that differences
can be incorporated into future buying decisions to improve the overall
efficiency of the operation. In conjunction with TRuMP, Rob also
provides direction to buyers of feeder cattle derived from deferred
futures prices, basis forecasts, and seasonally adjusted performance
projections. In some cases he provides projected breakevens for fed
cattle. TRuMP has been predominantly used by cattle feeders and beef
processors, but has also been applied to pork production. It can also be
easily adapted to other production activities where output is highly
correlated with futures markets.
- Rob was born and raised in Ohio on a family cattle and
grain farm. His exposure to the cattle business began at an early age,
as his family has been involved in production for three generations. He
graduated from Ohio State University with a B.S. in Animal Science and
M.S. in Agricultural Economics. As a graduate student, Rob studied
futures markets' topics such as market efficiency and profit margin
hedging strategies.
- In 1989 Rob began his career in the Cattle Feeding
Division of then Continental Grain Company in Chicago, currently
Conti-Beef Group. Initially, Rob worked as a market analyst and
streamlined their fundamental market database. In 1990 he took over the
responsibility for Cattle Crush trading. During 1992 Rob worked at one
of Continental's feedlots, Colorado Beef, where he worked throughout the
feed yard including training a new feed foreman and designing a new
shipping and receiving area. Upon returning to Chicago, Rob continued to
trade Cattle Crush as well analyzing formula pricing arrangements and
examining fed cattle marketing alternatives. He also worked with the
Pork Division in developing and executing hedging
strategies.
- E-mail
Rob
- Telephone (Toll-Free): 1-877-268-4800
-
|
|
