Customer > News > Are you tired of market volatility dictating your grain prices?

Are you tired of market volatility dictating your grain prices?

Mar 11, 2024

Are you tired of market volatility dictating your grain prices? It’s time to take control with a diversified marketing approach. Introducing the average price contract – this contract is another tool to add to your marketing plan to help manage market volatility.

DID YOU KNOW?
Over the past ten years, the markets reached their annual high between March and July in seven of those ten years.




The average pricing contract will market a portion of grain committed every day the CBOT is open using the day’s closing price. For example, if you choose to sell 5,000 bushels and the pricing window is 48 days long, IAS will price 104.16 bushels per day.

Standard pricing window:

Corn Pricing Window
April 15th – June 21st (48 pricing days)

Soybean Pricing Window
April 15th- June 21st (48 pricing days)

Flexibility with the average price contract includes:
• Price Contract (futures and basis set) or HTA (futures only set)
• Standard pricing window or customizable pricing windows
• Ability to price out remaining unpriced bushels at any time
• Minimum Threshold sell price
• Futures months and delivery points • Bushel volume (no minimum)

The Minimum Threshold sell price will pause the contract from pricing on days the market is below the set threshold price. Once the market meets or exceeds the minimum threshold sell price, it will price that day’s bushels and catch up on its missed pricing. When utilizing the Minimum Threshold, the contract may price zero bushels, or it may price less than the contracted bushel amount. The day’s CBOT close will be used on all daily pricings.

Call us today and work with our grain team to decide if the average price contract strategy is right for you!

Monona (563) 539-2001
Masonville (563) 900-5700
Hubbard (641) 864-226

 

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