Target contracts
WITH THE GRAIN MARKETS OPEN DAY AND NIGHT . . . 17½ HOURS IN TOTAL . . . IT IS IMPOSSIBLE FOR YOU, OR THE MERCHANDISER, TO WATCH THE MARKET ALL THE TIME. THE TARGET CONTRACT NEVER SLEEPS. IT IS WATCHING THE MARKET 24/7.
What is it ?
•Long before the crop is grown, you have the opportunity to make a sale and lock in the price. Thanks to the availability of the futures market grain can be sold months and even years prior to its harvest.
•That is a big window of time the marketing of the crop can take place ; a time when prices can move around a lot and present opportunities to sell at very profitable levels.
•As a standing offer it enables you to maximize your exposure to the market so that whenever prices rally, the offer is there – ready and waiting to capture the opportunity to lock in a profitable sale!
WHY DO IT ?
• Unlike some other marketing alternatives it costs you nothing to enter into a Target Contract.
• Target Contracts can be easily customized to your needs.
• The focus is on us working together to get your desired price if/when the market allows.
How does it work ?
Know your cost of production! Click this link for helpful resources : Cost of production.
Look at the market’s current price, the markets historical trends and your COP to figure out the price of your target contract.
Think about the amount of tonnes, based on your yield, that you would like to put into your target contract. We highly recommend making sales in increments and have included a few perspectives on the subject below:
• The two best times of the year to sell your crop
Give us a call or fill out our form! We will send over your target contract by email that same day.