The Feed Hedge Contract is a Corn or Soybean Meal Futures contract without margin calls.
It's a simple contract that allows you to lock in a futures price for 5,000 bushel Corn contracts on the board, or 100,000 ton Soybean Meal contracts without having to put up margin on deposit, or make any future margin calls. For a small fee, Producers covers all of those fees and future margins.
Because it's a true hedge, but without the need for you to open a brokerage account, Producers markets your livestock fed under the Feed Hedge. This enables us to verify that it is an honest hedge carried in our pooled hedge account and is not speculation in grain/feed futures. Standard marketing fees apply. And as always, Producers has numerous marketing agreements and arrangements with packers to keep your cash sales in the upper end of the market. Like a standard hedge, you receive the gain or loss for the futures market movement, and the basis gain or loss between where the futures close and your actual price for the corn or soybean meal you purchase.
The Feed Hedge enables you to price protect your feed inputs without the capital calls or the additional line of credit necessary to cover margin. We take away the margin deposit and margin call headaches.
Corn and Soybean Meal futures hedging made easy!
Territory East of Des Moines, Iowa
Territory West of Des Moines, Iowa