Some Merchant Plus Marketing plans started their pricing periods on November 16, 2015. The objectives of the INTL FCStone marketing professionals are 1) to reduce price volatility, 2) provide protection against extreme price decreases, and 3) achieve a price that is higher than the daily average of the pricing period.
Across all three pricing programs, the FCStone officials implemented trades in the first week to put in partially fixed floor prices while leaving the upside open to higher trade. This protects against any price drops but would still allow for gains if prices moved higher. This past week allowed some gains in prices as all futures rallied slightly. The officials began trading in some classic option collars as the markets rose in order to layer in a rising floor while slightly limiting upside potential.
It is still very early to start considering what final prices will be since we have only progressed 1 month in what are 4, 9, and 12 month pricing periods. These are initial results of what the expected FUTURES prices will be.
Another pricing period for Merchant Plus marketing has been developed for only NEW CROP CORN and is available for sign up. Click on the link for more information.
Farmer’s Coop elevator has also developed a Mean Contract that will help producers take advantage of seasonally higher prices when they are pricing their corn. Corn is priced at an average daily FUTURES price over the seasonally higher spring months. This contract is also only for NEW CROP CORN. Click the link for more information.