Worth a Look
Accumulators
Example from 5/25/23 prices **indication only call for current values**
Corn Dec 23 Producer - Accumulator with Euro Double-Up & Gtd Qty
Getting about a quarter over the board price on this one that will only have the potential to double up on the last day (11/10/23). If you get knocked out by the board getting as low as 448.75 the remainder of your notated bushels will be priced out at the guaranteed level of 522.
Example 1: you enter 5,000 bushels after 10 weeks you have accumulated 2,000 bushels at the accumulation level of 546.5 then you are knocked out because the board is below the 448.75. The remaining 3,000 bushels are going to be priced out at 522. This will give you a Futures only HTA with a Price of $5.318.
Example 2: you enter 5,000 bushels the market has stayed above the knock out level of 448.75 for the entire 25weeks. On 11/10/23 the market closes at 506 so it is below the double up level. You will have a 5,000 bu Futures only HTA with a price of 5.465.
Example 3: you enter 5,000 bushels the market has stayed above the knock out level of 448.75 for the entire 25weeks. On 11/10/23 the market closes at 560 so it is above the double up level. You will have a 10,000 bu Futures only HTA with a price of 5.465.
Board Price: 522.00
Start Date: 05/26/2023
End Date: 11/10/2023
Period Range: 25 weeks
Accumulation Level: 546.50
Knock-Out Level: 448.75
Double-Up Level: 546.50
Guaranteed Level: 522.00
MMM: 6.74
______________________________________________________________
Bonus Premium
Bushel requirement: 5,000 (able to split bushels between customers Ex. 2,500ea)
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 Dec23 for Corn or the Nov23 for beans. 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 5/25/23 prices **indication only call for current values**
Soybeans
June Cash: 12.90
Nov23 call @ 12.80 futures is worth .25 – Expires 10/27/23
This would give you $13.10 cash for your June Beans and $12.13 for your new crop bushels if the call fills on expiration and the fall basis stays the same as posted currently. (Current fall cash price is $11.12) If the call does not fill at expiration you will still have received the premium on your May beans and no additional bushels will need to be delivered.
Corn
June Cash: 6.17
Dec23 call @ 5.60 futures is worth .25 – Expires 11/24/23
This would give you $6.37 cash for your June Corn and $5.20 for your new crop bushels if the call fills on expiration and the fall basis stays the same as posted currently. (Current fall cash price is $4.80) If the call does not fill at expiration you will still have received the premium on your May corn and no additional bushels will need to be delivered
Please call for any questions
*Quotes Shown Below are indications only please call for updated values*
Please call for any questions
*Quotes Shown are indications only please call for updated values*
