Can you beat the corn market?
Fact: A simple Seasonal Average Contract has beat the harvest price every year since 2012, with an average gain of >40 cents/bu.
2020 Corn and Soybean Averaging Contracts - Old-Crop & New-Crop Averaging Period:
Begin selling: May 25th
Finish selling: July 3rd
Producers may elect to commit bushels to the seasonal averaging programs up until the Friday before the first sell date:
Signup Deadline: May 22nd
The Cogdill Farm Supply Cash Seasonal Averaging Contract is always FREE!
How does it work?
- Cogdill Farm Supply will price an equal amount of grain for you each at the market close each Tuesday and Thursday during the pricing period, and your final price is determined by the average of the weekly pricings.
- Old-Crop and New-Crop pricing programs are available:
- Old-Crop: For deliveries JULY thru SEP (Corn based on SEP futures, Beans based on AUG futures)
- New-Crop: For deliveries OCT thru DEC (Corn based on DEC futures, Beans based on NOV futures)
- There are two options for calculating the price:
- If you choose to “CASH PRICE AVERAGE," basis will be averaged along with the futures price, so your final price will be a cash average. The cash price averaging contract is FREE!
- If you choose to “FUTURES ONLY AVERAGE” (i.e. same as HTA contract), there will be a 3-cent HTA fee, plus a 1-cent roll fee (one roll to deferred futures allowed)
- Flex delivery HTA is available for an additional fee
- ACCELERATED PRICING/EARLY STOP: At any time, you may choose to price out the unpriced portion of the contracted bushels, or stop pricing early (i.e. without pricing all bushels). A 3-cent fee will be applied to all bushels priced priced early or left unpriced.
- You may pair either the CASH or HTA averaging contracts with a minimum price strategy to set a floor price, while keeping the ability to participate in a rally after the averaging period has ended.
- Contract Minimums: In order to participate, producers must enroll at least 1,000 bushels of corn, or 500 bushels of soybeans.
Stop in or call your nearest Cogdill elevator to get signed up today!