Price Optimizer
Description:
The Price Optimizer™ is a tool that allows a grower to deliver at a guaranteed minimum price, while remaining in the market to benefit from potential future price increases.
Components Include:
- Minimum Price
- Delivery Period
- Length of Contract
- Volume
- Quality
When to Use Price Optimizer™
You know WHEN you need cash flow and HOW MUCH of your crop you want to sell. You know the MINIMUM you are willing to accept for your crop, based on your cost of production and desired return on investment. You want to ensure you receive this MINIMUM amount for a portion of your crop while still being open to any upside in the futures market.
Price Optimizer™ Can Help You...
- Manage Grain Storage – Schedule delivery to a terminal for a specified period(manages space issues and quality risk)
- Manage Return on Investment – Guarantee a minimum price for some or all of your crop
- Capitalize on Market Rallies – Benefit from future price increases
- Manage Your Cash Flow – Ensure you have cash flow when you need it while still allowing you to remain in the market to capture potential upside
- Protect you from production shortfalls risk associated with other cash grain delivery contracts
Is Price Optimizer™ Right for You?
Depending on market conditions and grower needs, Price Optimizer™ contracts are appropriate for all growers. Richardson has planning tools that take the complexity out of the decision and help the grower decide if it is the right time to consider a contract. Your Richardson representative can give you easy to use tools and information to help make the right decision for your farm operation.
For more information on the Price Optimizer™, please see your Richardson representative.