Our approach to managing your risk
Today’s commodity markets present unique challenges. Added volatility and increased costs have created more risk for the producer, as well as more opportunity. That’s why our Grain Marketing Specialist Team is dedicated to finding opportunities to maximize your bottom line.
Price risk management for grain will help you protect your operation’s profits by taking advantage of those opportunities. It will also help you avoid the peaks and valleys of price prediction. True opportunity management in grain allows for marketing confidence in an uncertain environment.
Every year, farmers take on many challenges—crop yield, a volatile commodities market, and personal financial risks. At the top of every farmer’s mind is the price of their crop and the risk of the market price declining below the point of profitability. You must strike a balance between achieving a suitable profit level and preserving marketing opportunities.
DEVELOPING YOUR PLAN
Our approach to managing your grain risk and sustaining your profitability starts with understanding your goals. Then we work with you to develop a comprehensive marketing plan that minimizes exposure and fits your financial needs. This plan considers your total acres, cost of production, cash flow needs, storage facilities, and other critical areas.
If you need assistance limiting your price loss and maximizing your price, please give one of our Grain Marketing Specialists a call—you’ll be glad you did.
Grain Contract Options
ALCIVIA’s grain marketing services offer a wide range of grain contracting options to accommodate your strategic requirements and financial goals.
- CASH SALE
Sale of grain at today’s price, nearby delivery, or out of storage at the elevator.
- FORWARD CONTRACT
Delivery for a future date and available for at least two years out. You can place firm offers with us that we can watch for you.
- FIXED BASIS CONTRACT
This sets the basis price while leaving the futures price open. Sometimes advances are available on a fixed basis contract.
- HEDGE TO ARRIVE (HTA)
In this futures-only contract, you set the futures price (CBOT price) and leave the basis open.
- MINIMUM PRICE CONTRACT
Floor price is set with upside open. Generally involves selling grain and buying a call option.
- MINIMUM PRICE WITH A CEILING (FENCE)
Floor price with a limited upside. (Minimum – Maximum Price.) Buy a put, sell a call.
- PREMIUM OFFER CONTRACT
Sell bushels at a premium in exchange for a firm offer on additional bushels at a specific price and date.
- DIRECT SHIP
Ask about our opportunities to direct ship to local markets such as ethanol plants, processors, or others.
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Interested in our grain opportunity services? Click the button below to open a new account.