How it Works
Similar to a forward contract, you would commit to sell a certain quantity of bushels to be delivered at a later date. Instead of setting a price today you would choose the Merchant Plus pricing period you want to use. Your bushels are added to a pool that will be marketed by market analysis professionals at FCStone. FCStone has first-hand access to data in the global market place and has had a long-standing relationship with Farmer’s Coop Elevator. They will use their skills and experience to return the best FUTURES for your grain, which will be determined at the end of the pricing period. You will receive a cash price based on the final futures price and the elevator’s basis. Basis will be set at, or any time prior to delivery.
Reference Futures Contract
|Mar 2016 Corn||July 2016 (CN16)||9/1/15 – 11/1/15||11/16/15 – 3/15/16|
Aug 2016 Corn
|Sep 2016 (CU16)||9/1/15 – 11/1/15||
11/16/15 – 8/15/16
|Nov 2016 Corn||Dec 2016 (CZ16)||9/1/15 – 11/1/15||11/16/15 – 11/15/16|
Merchant Plus allows you to take advantage of alternative marketing strategies without the hassle involved with finding the right strategy, deciding when to implement it, and worrying about how it turns out. Committing a portion of your production is a good way to diversify your marketing portfolio and spread your price risk.
Merchant Plus cannot guarantee you a certain price or that it will outperform your usual marketing strategies. By pooling grain with other producers, FCStone will be able to utilize many different marketing tools to more broadly diversify your grain marketing portfolio to TRY and give you an above average futures price. We recommend doing no more than 10-20% of your production.
Farmer’s Coop Elevator charges an administrative fee of $0.02/bushel on all bushel committed to Merchant Plus. This fee will be deducted off of the final cash price when payment is made.
To enroll in Merchant Plus or if you have any questions contact the following.
Grain Office: 308-487-3325
Tucker Hamilton: 308-360-0830
Download the PDF here. Merchant Plus Marketing