Price Selector
Description:
The Price Selector™ is a tool that allows a grower to take advantage of a premium being offered in the market for future delivery of a commodity.
When to Use Price Selector™
You know WHEN and HOW MUCH you want to deliver a futures price for that delivery period is better than the current spot price as well as for other future delivery periods.
For example, in the following scenario, the 60 Day contract is most appropriate:
| Price/Delivery Period |
Spot |
30 Days |
60 Days |
90 Days |
| Futures |
325 |
325 |
330 |
325 |
| Basis |
-25 |
-20 |
-15 |
-15 |
| Price |
300 |
305 |
315 |
310 |
Price Selector™ Can Help You...
Manage Grain Storage – Lock in space at the terminal for a particular delivery date (manages space issues and quality risk)
Lock in a Premium being offered for a future delivery
Manage Your Cash Flow – Ensure you have cash flow when needed
Capitalize on a Rising Market
Is Price Selector™ Right for You?
Depending on market conditions and grower needs, Price Selector™ contracts 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.
For more information on the Price Selector™, please see your Richardson representative.