Well, I can only comment on what I have avaiable to me here. Locally we have Cargill. Some have a strong dislike of the company and others do not. I do know that Cargill offers quite a number of different marketing plans. I have been looking at one called Pacer Ultra. It works something like this. I pick a price. Say $5.00 Dec 2009 corn as my min. price. (floor). They say that they will pay me a min of $5.00 for my corn every marketing day the close of Dec corn is below $5.00. Every day it closes above $5.00 they will pay me that price. They choose a time period. This example uses . 1-29-2008 to 9-17-2008. That time period is appox. 163 marketing days. So if I would take 10,000 bu and divide by 163 = 61.35 bu/ marketing day. At the end they take each day times the price for the day and that is what I get paid. I can also get out anytime along the way. Say after 53 days, for example, I like the price of Dec 2009 corn. I can take the remaining 110 days x 61.35 = 6748.5 bu and price at that price I like. I have to take the ave. or min price on the corn from the 53 day time period. What does this option, contract or service cost me? 36 cents. So my min net, before basis, is really 4.64. Right or wrong ? I have no idea, that is just what is out there. You, will only know what else they have if you talk to Cargill. Hope that was clearer than mud. IMHHHHHHHHHHHHHHHHHHHHHHO. |