Grain Producer Solutions
We leverage world-class talent and knowledge we have gained from our team's decades of experience in helping farmers manage their risk. When you combine our expertise and these contract options with myGavilon, you receive the right risk management mix and the ability to track the progress and success of your contracts.
Contact your local facility to learn more about these contracts and how working with Gavilon can make all the difference in your risk management plan.
With Producers' Edge, Gavilon Pool Pricing program, you select the target delivery date and allow Gavilon’s team of industry experts to manage the risk for you. This program removes the complexity of marketing and price movement out of your hands. Instead, our experienced team will utilize our resources to price your grain at the highest level we can, based upon our perception of the market—providing you a competitive price without any excess stress. This contract provides a futures price only.
Minimum Average Price
This contract allows you to establish a minimum price and participate in any potential market rally during a defined averaging window. Every day an equal amount of bushels are priced and all bushels enrolled are priced by the end of the averaging period. At no point in the averaging period will a daily sale be below the minimum price. If the futures price settles below the minimum price, the minimum price is the hedge price for that daily pricing. However, if the futures price settles above the minimum average price, the higher price is used for that daily pricing. At the end of the averaging period, the contracts final value is a simple average of each daily pricing result.
Minimum/Maximum Average Price Contract
In the Average Price Contract, a simple average is used to determine your futures price. History shows that the average price of December corn from March to June tends to be higher than the price in October or November. This contract allows you to capitalize on market history. The Average Price contract is available for corn only. Every day an equal amount of bushels are priced at the daily settlement price of December corn and all bushels enrolled are priced by the end of the averaging period. At any point during the pricing period, you can choose to elect to price any remaining bushels left to price in the period.
Do you need downside protection with upside participation, but want complete control over how it gets priced? Then the traditional Minimum Price Contract is your answer. With this contract, you control the timing of pricing your grain while also purchasing a Call Option for upside participation. You determine which call to buy, but we will certainly provide advice if you need it. While the long call option adds a bit more pricing complexity vs. our Minimum Average Price Contract—it hands over all the controls to you to be in and out of the market when you best see fit. This is available for any commodity.
The HTA Contract, commonly referred to as a Futures First Contract, allows you to lock in the futures portion of a cash contract, thereby allowing the basis portion to float with the market. At a later date, you can set basis converting the HTA to a full cash price. This is a great tool for those wanting to protect the Futures risk but have an opinion on basis or simply would prefer to set it at a later date. This is available for any commodity.