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| In the past, my marketing "plan" has just been to space out sales throughout the year, quite often using HTAs because there are usually some basis opportunities late summer or early fall here.
A Cargill rep is suggesting their Portfolio Builder and Daily Floor Plus on some bushels. Who has opinions on these products? My general theory is that they don't offer these products out of the goodness of their hearts and the more complicated it gets the more likely long-term that they are making more money and I'm losing money. But I'm having a tough time evaluating these products objectively.
Here's their description:
Daily Floor Plus – today Nov futures closed at 11.55
November bean futures $12.00/12.00/11.99/10.00 trading now through 10/23/24 with a cost of around 5 cts
Plus $12.00
Floor $11.99
Trigger $10.00
Contingent offer 12.00
If we get all the way to 10/23 without November futures trading below the trigger of 10.00, you will receive 12.00 futures. If futures close at 12.00 or higher on 10/23 the contingent offer would fill and there would be additional bushels sold at 12.00
If November futures fall below 10.00 any time between now and 10/23, you would get the weighted average which should be 11.99-12.00 since we have both the Floor & Plus Price right at that level. If the contract does Trigger out (futures trade at 10.00 or lower) the contingent offer is automatically cancelled.
For December corn I’m looking at a $4.90 Plus/$4.89 Floor/$3.00 Trigger/$4.90 offer for around 5 cts. December futures closed at 4.64 today.
Portfolio Builder
I also would suggest we consider some bushels in Portfolio Builder. Historically, that works pretty well in a bear market. I’ve attached a chart that shows you the history on corn. At this point the expectation is that both corn and bean carryout grow with the 2024 crop. That’s assuming we grow at least an average crop. It combines 4 different marketing tools to create the final futures price. Each works during the historical best seasonal window – for example, typically the best futures levels for new crop are during the March-June planting window before harvest so we use that for the averaging piece. The fee for either December corn futures or November bean futures is 8 cts.
Attachments
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 Cargill Elevate_Portfolio Builder_2024 Comparision copy.pdf (154KB - 82 downloads)
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Cargill Portfolio Builder and Daily Floor Plus
