These dynamic contracts are ideal for producers who are comfortable with brokerage accounts and like to take a hands-on approach to marketing.
- Opportunity for greatest upside potential
- No minimum quantities
- Offered even when the market is closed
- Susceptible to market volatility
Sell Grain with Confidence
Focal Point can be used to express market bias on both new and previously contracted bushels. This allows you to price grain and still participate in potential upside market movement.
When is Focal Point a Solution for Me?
Focal Point can be applied to a new grain contract or added to an existing grain contract with the futures price component established. Use this contract if you are confident that futures prices in the selected futures reference month may improve and if you are comfortable without an absolute floor.
What are the advantages of the Focal Point contract?
- Freedom to deliver grain when needed
- Freedom to choose time-frame on participating in the market
- Discipline and execution to capture cash price goal
- Ability to participate in any market movement
- Flexibility to establish the Final Focal Point Price when you are ready
- Potential to enhance the contract price
With markets in flux, locking in a guaranteed floor price can provide needed confidence in your marketing plan. Cargill Minimum Price allows you to select a floor price of your choosing, maintain upside, and retain the control to price out at anytime. There are a wide variety of additional strategies and combinations that can be utilized as part of a Minimum Price contract depending on your market outlook.
When Is it Used?
Minimum Price is a complement to any grain marketing plan at any time of year. It provides a floor price to insulate you from a volatile world—while maintaining upside participation.
What are the advantages of the Minimum Price contract?
- Investments are deducted from the contract price, not paid up front
- Trade at any time of the day regardless of the market being open or closed
- Write the contract for any quantity
- You establish the floor of your choice
- You establish the pricing period of your choice
- There are a variety of available strategies using put or call premiums in combination
- You can convert a variety of contracts to Minimum Price contracts
- You do not own an option, it is being used as a re-pricing mechanism
Information provided is general in nature and is provided without guarantee as to results. The information is not intended to be, and should not be construed as, trading, financial, legal, or tax advice. No warranty is made with regard to the information or results obtained by its use. Cargill, Incorporated, its subsidiaries, and affiliates disclaim any liability arising out of your use of, or reliance on, the information.