The system in which grain producers reduce their exposure to price risk in the commodity
markets has changed dramatically over the last decade. The information age has triggered
a paradigm shift in favor of the farmer--but only if the farmer seizes the opportunity
and becomes proficient with the necessary skills. In terms of hedging practices,
“seizing the opportunity” directly correlates to a healthier bottom line.
Farmers have historically used full-service brokers to buy and sell futures contracts
to hedge their production. Within that process, the broker served two roles. First,
they executed trades by contacting people on the trading floor to carry out the
order. Secondly, they conveyed information to farmers that they acquired through
their interaction with traders. In those days, brokers were the only intermediary
that provided these services to farmers--and they charged accordingly.
However, the information age has leveled the playing field, and empowered farmers
to implement hedging on their own. Today the internet allows anyone to trade the
commodity markets at any time of the day, and market information is readily available
to those who seek it. The role of the full-service broker is diminishing, especially
with their commission rates set between $30 and $50 a trade.
The goals of the professionals at GrainHedge are simple --empower the farmer with
quality data and tools, and increase the farmer’s profitability. Included in the
GrainHedge trading platform is a variety of features, such as streaming real-time
quotes, charting software, market depth, detailed weather data provided by Planalytics,
and Reuters’ streaming newswire--all designed to help the farmer make timely, accurate
Today, with the uncertain and volatile markets, it is essential to develop, maintain,
and track your marketing strategy. GrainHedge provides you with powerful supporting
services such as My Grain Trades and the Cash Market Optimizer, which help farmers to monitor and enhance
their marketing strategy. Most importantly these tools will, on average, earn you
an extra 10 to 20 cents a bushel over your nearest cash market. These tools also
allow a farmer to view his crop value and farm financial information valued at current
market prices. Because this information is mark-to-market, farmers can observe and
understand precisely how each day’s market fluctuations affects their overall crop
value. No other brokerage offers such a comprehensive suite of tools designed to
meet the needs of farmers.
Why pay $30 to $50 per trade with a full-service broker when you get the most advanced
grain marketing package just by being a GrainHedge client? At $7 a side, GrainHedge
is the new way of navigating the market.
To find out more about how GrainHedge can help you make more on your crops, or to
sign up for a free demo of the product, give us a call at (877) - GRAIN07 (877-472-4607).