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| Mini-Max Averaging Contract
Cogdill Farm Supply is now offering a Mini-Max Averaging contract, which replaces our popular “Seasonal Average Pricing” program. The Mini-Max Averaging contract can be used to build a foundation of seasonal average sales prices for both old- and new-crop corn and beans, but includes some new features to give you greater control over the cost and pricing opportunity.
NEW FEATURES
Flexible Marketing Dates
Select your own custom date range for price averaging
Flexible Delivery Options
Custom-tailor your contract to fit your desired delivery window
Flexible Bushel Amounts
Market any volume of bushels
Mini-Max
Add a floor and ceiling price – the final contract price will be the
average between the floor and ceiling during the price window
HOW IT WORKS
- Specify the number of corn or soybean bushels you want priced, and the delivery period
- Choose the date range during which you would like the average to be determined
- You can elect either straight averaging for free (i.e. with no floor or ceiling), or Mini-Max averaging
For example, a -10/+100 Mini-Max contract provides a guaranteed price floor 10¢ below the starting futures price of the contract and allows upside price averaging to $1.00 over the starting futures price. Based on current market conditions, a -10/+100 Mini-Max contract, with averaging through Labor Day, would cost* just under 25¢ for new-crop corn or soybeans.
*Prices and fees are based on the current market, and subject to change until the launch date of the contract.
A Mini-Max Averaging contract can be completely customized to best fit your marketing approach. If you are interested in using seasonal averaging or Mini-Max Averaging to sell corn or soybeans, please call Rob Cogdill 712-269-5849 for more information.
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