Notice: Using Internet Explorer may cause some issues with loading dynamic content such as Cash Bids. Please use a modern browser such as Edge, Firefox, or Chrome.

Weather N/A
Futures

Looking for new ways to diversify your grain marketing?

Wanstead Co-op is rolling out new pricing tools that allow you to diversify your grain marketing portfolio as you manage your price risk. Our grain marketing team is excited to talk to you to determine which program is the best fit for your operation and values, as we want to help you be profitable and succeed! 

Wanstead will still be offering our traditional grain marketing alternatives such as Deferred Pricing Contracts, Basis Contracts and Grain Pricing Orders. 

These new marketing programs are not meant to price out all of your bushels; they are simply another tool to help price out some of your bushels.

Introducing two new alternatives:

Merchants Plus

You would enroll bushels in the program by calling our grain marketing team. You would decide what commodity you want to price, what your time frame to have the bushels priced is, and how many bushels you would like priced.  From that point on, you are putting your trust in the professionals at StoneX to use a combination of futures and options sales to sell your grain futures at profitable levels. This program ensures that you have all the enrolled bushels priced out by the end of the program. It allows you to price these bushels without having to look at and follow the markets every day. If you opt to sign up for this program, you have the ability to check your price daily to track what your current price per bushel is.

Over The Counter (OTC)

You would enroll bushels in the program by calling our grain marketing team. Then, we would work together to determine what program alternative would be best suited for you. We have programs with a limited downside price exposure, unlimited upside, limited upside, and double-up bushels. Once you determine which program to price out your futures, it prices a fixed number of bushels each week. 

This method ensures that you price out bushels each week according to the rules of the program. This disciplined approach ensures that all of your bushels of grain enrolled are contracted/priced by the end date of the program. 

All the OTC programs we offer through Wanstead offer a downside price exposure, through a competitive floor price. Some of our programs also offer unlimited upside which allows the grower to participate if the market moves higher. A handful of the programs have a small fee, while some are free! OTC programs are very customizable to your operation, and we can help find and recommend programs that would work best for you. 

Some examples of the OTC Products that we are able to offer are listed below. If you are interested in any of the options, we can develop a quote for you with updated values for corn, soybeans or wheat.

  1. Producer Flex Floor Advantage
    1. Each week that futures settle below the established floor price; futures are priced out at the floor price. Each week that future settle above floor price, the weekly quantity is valued at that higher price for the week. Equal bushels are priced each week. There is often a small cost to programs of this type.
  2. Producer Flex Floor with Double Up Added
    1. Each week futures settle below floor price; futures are priced out at the floor price. Each week future settle above floor price, the weekly quantity is valued at that price for the week. Equal bushels are priced each week. If futures close above a set price on the close date, the grower is obliged to contract another set of equal bushels at the set price. A program of this nature would be free.
  3. Guaranteed Quantity Producer Accumulator Double Up 
    1. Each week futures settle above the knockout price; bushels are priced out at the accumulation price. If the futures ever trade at the knockout price, you are knocked out of the program, and any leftover bushels are priced out at the guaranteed futures price. If on the end date, futures are above the accumulation price, you are obliged contact another set of equal bushels at the accumulation price.

 

We are very excited to offer more pricing options to our customers at Wanstead! If you are interested in any of these services, please call our grain marketing team, who would love to chat with you about the alternatives further!

Your choice regarding cookies on this site:

We use cookies to optimize site functionality and give you the best possible experience.
Privacy Policy

Your choice regarding cookies on this site:

We use cookies to optimize site functionality and give you the best possible experience.
Privacy Policy