PriceProtector® Call

The PriceProtector Call is a cash grain delivery contract that allows you to set a guaranteed price while remaining in the market to benefit from potential future price movements. The Guaranteed Price you set is determined by the current Deferred Delivery price less the Total PriceProtector Fee. You can enhance your Guaranteed Price by choosing to re-price the contract to benefit from changes in the PriceProtector Value prior to the expiration date.

Benefits: A PriceProtector provides you with full price protection There is the opportunity to benefit from future price fluctuations A PriceProtector can be applied to any quantity or delivery period An upfront payment equal to the Guaranteed Price will be paid to you upon delivery A PriceProtector can provide production shortfall risk management In the case of a production shortfall, the PriceProtector Value less the Total PriceProtector Fee can be used to offset the cancellation costs associated with the cash grain delivery contract

Risks: The PriceProtector contract can only be re-priced once Only futures price changes will improve the contract value (the basis is locked in when the contract is established) Futures prices may not change prior to the expiration date of the contract The contract will only be re-priced at your recommendation

 

Disclaimer
This marketing alternative overview has been prepared to help you identify the marketing alternatives offered by Cargill, along with the advantages and disadvantages of each. Cargill has used its best efforts to provide you with this useful and helpful information. However, we cannot guarantee that this contract alternative will function in the same way in each and every situation, and information that may be accurate for one farmer may not necessarily prove to be accurate for another. Therefore, we do not make any warranty or guarantee as to the accuracy of any of the information as it is applied in a particular marketing strategy. Entering into any of the transactions outlined on this site will not result in your opening a futures account with Cargill or otherwise, nor will you obtain a futures position. The only futures position relative to any transaction, if one exists, will be held by Cargill. This and other contracts may employ the futures market as a grain pricing mechanism, but the contracts described are not, themselves, futures contracts.