Worth a Look
Accumulators
Example from 9/21/23 prices **indication only call for current values**
Corn Dec 24 Producer - Accumulator With Weekly Double-Up & Gtd Qty
Board Price: 508.75
Start Date: 09/22/2023
End Date: 11/22/2024
Period Range: 62 weeks
Accumulation Level: 527.25
Knock-Out Level: 453.00
Double-Up Level: 527.25
Guaranteed Level: 508.75
MMM: 6.59
Accumulating 19 cents above market with a Guarantee of at least 5.0875
This does have a double up potential so keep that in mind as you decide on number of bushels to contract.
Every week the contract settles
- above the Knock-Out Level (453.00), and at or below the Accumulation Level (527.25), 100% of the weekly notional quantity is priced at the Accumulation Level (527.25).
- above the Accumulation Level (527.25) and a knock-out has not occurred, 200% of the weekly notional quantity is priced at the Accumulation Level (527.25).
If the Knock-Out level
- trades or is breached to the downside, further accumulations and the Double-Up risk cease. Any swaps already accumulated will continue to exist. Remaining accumulations are priced at the Guaranteed Level (508.75).
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Soybean Nov 24 Producer - Accumulator With Weekly Double-Up & Gtd Qty
Board Price: 1,266.25
Start Date: 09/22/2023
End Date: 10/25/2024
Period Range: 58 weeks
Accumulation Level: 1,300.00
Knock-Out Level: 1,173.00
Double-Up Level: 1,300.00
Guaranteed Level: 1,266.25
MMM: 13.17
Getting a 13.00 accumulation with a Guarantee of at least 12.6625
Every week the contract settles
- above the Knock-Out Level (1,173.00), and at or below the Accumulation Level (1,300.00), 100% of the weekly notional quantity is priced at the Accumulation Level (1,300.00).
- above the Accumulation Level (1,300.00) and a knock-out has not occurred, 200% of the weekly notional quantity is priced at the Accumulation Level (1,300.00).
If the Knock-Out level
- trades or is breached to the downside, further accumulations and the Double-Up risk cease. Any swaps already accumulated will continue to exist. Remaining accumulations are priced at the Guaranteed Level (1,266.25).
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Bonus Premium
Receive premium on cash bushels in exchange for secondary offer on deferred delivered bushels
Bushel requirement: 5,000
Fee: 5₵/bu
How it works: In this case you are selling old crop bushels and placing an offer for new crop bushels.
Tama Benton will sell a call option at a predetermined strike price in the Dec24 for Corn. The premium collected from the call price minus the fee will be added to your old crop cash price. If the market is at or above the strike price on date of expiration you will be obligated to deliver additional bushels. These additional bushels will be to the same location as the initial old crop bushels, and will be subject to the current posted basis for that location. If the market is below the call’s strike price at expiration, then no additional bushels will need to be delivered.
Example from 9/21/23 prices **indication only call for current values**
Corn
Oct/Nov Cash: 4.43
Dec24 call @ 5.40 futures is worth .25 – Expires 09/27/24
This would give you $4.63 cash for your Oct/Nov23 Corn and with historical basis values in fall should put your Oct/Nov24 at $5.00+ if the call fills on expiration. If the call does not fill at expiration you will still have received the premium on your Oct/Nov23 corn and no additional bushels will need to be delivered next fall.
*Contact us for more information*
Please call for any questions
*Quotes Shown are indications only please call for updated values*
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General Inquiries
Visit our Careers Page for more information.
Tama-Benton Cooperative Locations and Office Hours
Dysart- 319-476-3666
Office Hours
Monday-Friday 8:00-4:30
Vinton 319-472-4791
Office Hours
Monday-Friday 8:00-4:30pm
Clutier 319-479-2242
Office Hours
Monday-Friday 8:00-4:30pm
All Grain Settlements are now completed at the Clutier Office. For your convenience Grain Checks and Contracts may be printed at all locations.
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CR PROCESSOR HOURS
FRIDAY SEPTEMBER 22ND
ADM: 5AM-1PM
INGREDION: CLOSED
STARCH: 7AM-11AM
CARGILL BEANS: 6AM-7PM
THESE HOURS ARE POSTED FOR YOUR CONVENIENCE.SUBJECT TO CHANGE WITHOUT NOTICE.
BE PREPARED FOR EARLY CLOSING WITHOUT NOTICE DUE TO WEATHER, FLOODING, OR DOWNTIME.
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Please report Direct Shipment Loads Promptly to the Dysart Office in Order to Maintain Delivery Schedules and to Final Price Contract Overfills and Underfills. Thank You
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