Wheaton- Dumont Coop Elevator along with CHS Hedging is now offering Compass® contracts. Below is some information regarding these contracts. Please contact Duane Steen at 320-808-1337 for more information.
Available only through CHS Hedging, CHI Compass® contracts are innovative grain and energy contracts that rely on over-the-counter (OTC) derivatives to manage price risk. Some contracts provide market protection using averaging techniques, while others more closely resemble exchange traded options with non-traditional expiration dates. All of our contracts can be used in a comprehensive marketing plan to more effectively manage price risk.
The Price Builder Bonus Contract provides the ability to market bushels every day of a contract period at a floor price level above the futures level that exists at the time the contract is created. Advantages of this contract include the ability to sell bushels above current futures values and to contract any quantity of bushels; no minimum of bushels required. Click here for example.
The Foundation Contract combines the wisdom of pricing bushels on a daily basis with the protection of a floor price for a powerful marketing tool. One advantage of this contract is that it can be done for any quantity of bushels; no minimum of bushels required. Also, these contracts cost less than exchange-traded puts and calls, and do not require additional marketing decisions. Click here for example.
The Cash Plus Contract provides producers with a premium or "push" in the price of old crop grain in exchange for a firm offer on an equivalent number of new crop bushels at a specific strike price. One advantage of this contract is that it can be done for any quantity of bushels; no minimum of bushels required. In addition, the expiration dates in these contracts can be chosen in a manner that allows producers to know their new crop obligations prior to harvest. Click here for example.