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Capture Seasonally Better Prices for Your Soybeans

ADM now offers ASPTM for Soybeans with Sign-Up Ending May 19
By Doug Roose, Director of ADM Producer Origination
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Watching spring soybean markets, hoping positive price trends will last? Then you’ll be interested in an Average Seasonal Price contract that ADM is offering now through May 19. ASP™ helps you capture what is typically a June and July seasonally beneficial time frame to market new crop soybeans, based on the past 10 years of performance (see 10-Year Seasonal Trend).

Past performance is not indicative of future results. ADM does not warrant this information to be free of omissions and errors.

Here’s how it works:

  1. By May 19, enroll a portion of your anticipated 2017 soybeans.
  2. ASP prices during June and July—a historically higher price window.
  3. You receive the average futures price during this window.
  4. On August 3, your ASP Futures Reference Price is established. You decide when to set the basis, ahead of delivery.
  5. You deliver your grain and receive your final price:

ASP Futures Reference Price +/- Basis – Service Fee

ASP leverages historical market trends and puts them to work going forward. Six years out of 10, November soybean futures have climbed toward spring, reached a peak in summer, and fallen toward harvest. While that’s no guarantee, the concept can be applied to a diversified marketing plan—and doing so consistently with the same percent of production every year.

ASP can reduce stress while you’re busy producing a crop. No watching and worrying over the markets. ASP automatically executes for you during a seasonally strong window. ASP can also give you a benchmark to use in the rest of your marketing.

Get a portion of your 2017 soybeans enrolled by Friday, May 19 and rest easier. Your ADM Merchandiser can help you enroll—and talk through an overall strategy to get you closer to your 2017 target prices.

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ADM is providing this communication for informational purposes, and it is not a solicitation or offer to purchase or sell commodities. The recommendations in this communication do not take into account any particular individual’s or company’s objectives or needs, which should be considered before engaging in any commodity transactions based on these recommendations. The sources for the information and recommendations in this communication are believed to be reliable, but ADM does not warrant or guarantee the accuracy of the information or recommendations. ADM or its affiliates may hold or take positions for their own accounts that are different from the positions recommended in this communication. The information and recommendations in this communication are subject to change without notice.