How to Evaluate Your 2018 Grain Marketing
October 4, 2018
With harvest underway, hopefully your 2018 grain marketing plan is still in place, guiding you on whether to sell or store the extra bushels in this large harvest. Successful... Read More
Automatic Contracts:
Average Seasonal Price (ASP™)
It’s no secret that grain prices are historically better at certain times of the year. With the Average Seasonal Price (ASP™) contract, you have the opportunity to take advantage of those seasonal prices by getting the average futures price during the respective seasonal pricing window. The ASP™ pricing window helps capture the historic seasonal price premiums with automatic execution that takes some of the stress out of grain marketing.
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- How it Works
- Benefits
- Related News
How it Works
The ASP pricing window helps capture the historic seasonal price premiums of new crop corn futures prior to each year’s harvest. When you’re ready to establish a grain contract, here are the steps:
- You enroll a portion of your production before the pricing period begins.
- An equal portion of the grain is priced every day during the pricing period, based on the Chicago Board of Trade’s daily futures settlement price for the respective futures month.
- When the pricing period concludes, your ASP Futures Reference Price is established. You decide when to set the basis.
- You deliver your grain and receive a final price. The final price is the ASP Futures Reference Price +/– Basis – Service Fee.
Note: Specific dates fluctuate on an annual basis. For current dates, talk to your local ADM representative.
Past performance is not indicative of future results. ADM does not warrant this information to be free of omissions and errors.
Benefits
- Captures the average futures price during a historically “price-friendly” window.
- Automatically executes for you, minimizing stress and worry.
- Allows you to set the basis.
- Provides an early price-out feature so you maintain some control of your final pricing.
- Helps diversify your marketing plan.
- Establishes a challenging benchmark for the rest of your marketing.
Contract Performance Charts
Our grain contract portfolio offers a wide range of choices, designed to help you meet your marketing goals.
See how our contracts have performed with just a few easy clicks.
All prices are futures price references (not cash equivalents). Past performance is not indicative of future results. ADM does not warrant this information to be free of omissions and errors.
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