Nov 10 2022
Hedge and Trade a Bushel Automatically with cmdtyView Hedge
Barchart already connects producers and grain buyers by linking producer-facing apps to cmdtyView - the addition of cmdtyView Hedge unlocks more efficiency by allowing users to hedge and trade a bushel automatically! cmdtyView empowers users by creating automated hedge orders for open offers, and then pushing grain contracts and hedge executions directly into an agribusiness’s ERP system when an offer matches.
Placing cash and futures hedge orders with cmdtyView is simple! Here’s how it’s done - the merchandiser creates a new cash grain bid via the Bids window. In this example, a cash bid is created for “New Crop Corn 22’ for a delivery period from 10/01/2022 - 12/31/2022 using the December CBOT Corn futures. At the time of bid creation the current CBOT ZCZ22 bid is 629.25. With a basis level set at -.10 cents below the futures bid, the cash bid is 619.25.
Once the bid is created and made producer facing via the ‘Add’ button, the bid is ‘tradeable’ and the producer can then take action on the bid. In the example below, the Bid window is linked to the Basis Trade window where the producer, or the merchandiser on behalf of the producer, can make an offer to sell cash grain to the elevator location.
The Basis Trade window shows the current bid and allows the producer to sell directly to the bid or raise their offer by manually entering in a value or by using the up or down arrows to set their offer price. Below, the offer to sell cash grain has been raised to 630.25, 10 cents higher than the prevailing bid.
Once the order is placed, the merchandiser's Orders window is updated with both the cash offer from the producer as well as the auto hedge in tow. Below, farmer ‘AK’ has placed an order to sell 5000 bushels of corn to the ‘Grants Pass’ location at a price of 630.25. Once the order is confirmed, the merchandiser will see both a working cash order and an offsetting futures order (hedge) placed simultaneously in their Orders panel. The futures hedge is placed .10 cents over the cash order by default.
cmdtyView Hedge Management was designed to help facilitate grain marketing and alleviate the risks associated with cash transactions between producers and merchandisers. Simplify your workflow with the ability to hedge and trade a bushel automatically! To learn more or to request a demo of cmdtyView Hedge, please click here or contact us at email@example.com.