Pricing ModelsDecision Commodities now offers
four technical pricing models for grain pricing.
These models offer you flexibility to fit your risk management needs
and marketing approach.
Index
Model that prices an even increment of bushels each day for a given
pricing period. The Index pricing model effectively produces
an average price for the underlying pricing period.
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Rally
Model that prices on days during the pricing period when: 1) the
settlement price of the referenced futures price exceeds the floor
price and 2) the settlement price does not exceed the previous day’s
settlement price (one day price change) by the sensitivity level (a
producer set variable). The Rally pricing model is designed to price
a higher proportion of bushels after rallies in the market.
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Detail >>
Accelerator
Model where the daily amount of bushels priced “accelerates” as the futures
prices increase above a Pivot Price, which you choose. The model prices on days when the settlement
price of the referenced futures price exceeds the floor price, and
prices a greater amount of bushels the higher the level of prices.
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Topper
An aggressive pricing model, bushels price on days when grain prices
close up sharply from the previous day.
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Crossover
Solutions™
Decision Commodities and
AgriVisor have partnered to
bring a new class of products and services to grain buyers and
producers – Crossover Solutions™
Crossover Floor NT™
An incremental pricing contract with a minimum price and
above-market pricing opportunities. This contract prices over
a pre-set pricing period, with daily pricing at a) the min if the
market is below minimum price or b) at the NT (Next Target) price if
market price is above min price.
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Crossover Floor IT™
An incremental pricing contract with a minimum price and
above-market pricing opportunities. This contract prices over
a pre-set pricing period, with daily pricing at a) the min if the
market is below minimum price or b) at the IT (Integrated Target)
price if the market price is above minimum price. The number of
bushels that price per day doubles when the market is above the IT
price.
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Crossover Extreme™
An incremental pricing contract with a minimum price and unlimited
upside. This contract prices over a pre-set pricing period, with
daily pricing at the higher of a) the daily close or b) minimum
price.
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