Automatically Take Advantage of Seasonality
March 16, 2022
In a volatile soybean market, the Average Seasonal Price (ASP™) contract can help lower stress levels.
Price Daily™
Grain prices can fluctuate significantly on a day-to-day basis. Our Price Daily contract helps you manage volatility by pricing equal amounts of grain over a customized time period. You set the contract parameters that best complement your risk portfolio, including the option to add a floor to protect your downside.
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How it Works
How it Works
The Price Daily contract prices an equal portion of your contracted bushels each day during the pricing period at the closing futures reference price. Your final futures reference price is equal to the average daily closing price.
You can add a floor price to protect your downside. Should the market dip below that floor at close, your grain will be priced at your floor price that day. You can also add a ceiling price to lower your service costs. In this case, on any day the market closes above your ceiling, your grain will be priced at your ceiling prices.
Taking advantage of a Price Daily contract is easy:
- You choose the total number of bushels you want to price, the time period in which pricing for a specific commodity will occur and a delivery period.
- You decide if you would like to add a floor or ceiling price component to the daily pricing activity.
- When the pricing period concludes, the final futures reference price will be established on your contract.
- Prior to delivery, you set the basis.
- You deliver your contracted grain and receive a final cash price, which is the Final Futures Reference Price +/− Basis − Service Fee.
Benefits
Benefits
- Helps you manage market volatility.
- Provides discipline to execute your plan.
- Can be customized based on your risk threshold and price targets.
- Helps diversify your marketing.
- Automatically executes for you, minimizing stress and worry.
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