MARKET PREMIUM PROGRAM

The CGB Market Premium allows the farmer to receive a Daily Hedge Price at a premium to the current market, for no product cost. There are two levels that are defined at the start of the pricing window, the Daily Hedge Price and the Price Out Level. This program prices equal amounts daily and will fully hedge all bushels enrolled, with no potential for additional quantities to be hedged.

 

How it Prices Your Grain

Prices equal amounts daily based on the following rules:

• If futures do not trade at or below Price Out Level, you receive the Daily Hedge Price.
• If futures do trade at or below the Price Out Level, all remaining bushels are priced at the Price Out Level. The Program is done and your hedge will be given back to you.
• Your All-In Hedge Price = Simple Average of all Daily Hedge Values.

 

• Receiving a Hedge Price at an attractive level versus what can be achieved in the current market.
• Known worst case to the downside, completely protected.
• Ability to receive an attractive hedge price even if the market never rallies.
• Product cost is zero cents per bushel.
• Known quantity of bushels will be hedged; no more, no less.