Contracting Tools
Richardson has a variety of contracting tools and options to help customers determine the right contract and timing to market their grain. Our planning tools take the complexity out of the decision and help growers decide if it is the right time to consider a contract. Your Richardson Pioneer representative can help you access easy-to-use tools and information to help make the best choices for your farm. These contracting tools can help you:
- Manage Grain Storage – Schedule delivery to a terminal for a specified period (manages space issues and quality risk)
- Manage Return on Investment – Guarantee a minimum price for some or all of your crop
- Capitalize on Market Rallies – Benefit from future price increases
- Manage Your Cash Flow – Ensure you have cash flow when you need it, while allowing you to remain in the market to capture potential upside
- Avoid production shortfalls risk associated with other cash grain delivery contracts
Depending on market conditions and grower needs, these contracting tools are appropriate for all growers. Richardson has planning tools that take the complexity out of the decision and help the grower decide if it is the right time to consider a contract. Your Richardson representative can give you easy to use tools and information to help make the right decision for your farm operation.
Market Manager
The Market Manager™ is a flexible tool that commits Richardson to buy a predetermined amount of a commodity at a specific price and time from the grower. Only the grower can cancel this contract prior to execution – Richardson cannot cancel the contract at any time. If the contract is not exercised, (because the price criterion is not achieved during the contracting period) the contract simply expires.
Basis Selector
The Basis Selector™ allows growers to take advantage of a potential upside to the futures market while locking in a basis price. Growers can choose to roll a basis contract over to the next futures month.
Price Selector
The Price Selector™ is a tool that allows growers to take advantage of a premium being offered in the market for future delivery of a commodity.
Price Optimizer
The Price Optimizer™ allows growers to deliver at a guaranteed minimum price, while remaining in the market to benefit from potential future price increases. Components Include -- minimum price, delivery period, length of contract, volume and quality.
