By Brandon Bruggeman, North America Commercial Trade Lead
When building a grain marketing plan, farmers should focus on getting the right tools into what I call a “risk management bucket.” Having a go-to collection of pricing contracts and strategies simplifies the response to any market situation. It’s just like how having a set of screwdrivers, sockets, and pliers in the bed of your truck that simplifies in-field repairs.
This is why Indigo has focused on bringing the most used and impactful transaction options right into its Marketplace digital experience. Without having to hover over your desktop or make four of five phone calls over the course of a day, Marketplace gives you the flexibility to connect and transact with buyers your family farm has done business with for years, or with new buyers — all from a single channel. As of today, you can work on the platform in three ways:
When you need to transact in cash with a local facility... Marketplace offers you the ability to negotiate a contract directly with any grain buyer on the platform. Through an end-to-end transaction experience on our new mobile app, you can lock in or negotiate basis with a buyer. In most cases, the contract and settlement will be directly with the buyer instead of Indigo. That means only thing that changes is the increased speed at which you can do business.
Marketplace also brings in Chicago Board of Trade futures prices and combines them with a posted basis bid so you can view and lock in a great cash price without waiting for the originator to call you back. If you encounter a facility not set up to transact cash bids, simply put in a cash offer and let Marketplace do the work for you.
When you want to explore multiple markets at once... Marketplace pulls in all posted bids from surrounding markets, does the math on transportation costs instantly, and streamlines a list of bids within your personalized homepage. This allows you to quickly compare bids across multiple locations at once.
Many times, a farmer’s best bid can often be more than 30 miles away, even with the extra transport costs factored in. But bid sheets often look entirely different county to county assuming that you are even tracking those additional markets. Arranging for the transportation to reach those markets can be just as time consuming as selling the grain itself. That is why Marketplace also includes a logistics service right within the app, Indigo Transport, which simplifies finding and booking trucks to haul your grain.
When you want to forward contract to manage risk... Marketplace allows you to set futures prices through various pricing contracts or managed pricing programs. Indigo Futures Lock (HTA), for example, gives you the option to lock in a futures price while maintaining flexibility to set basis with one of the thousands of facilities on the platform.
Utilize a variety of physical delivery contracts to hedge risk and manage the ups and downs of grain marketing without the worry of margin calls. Then, make basis setting on those contracts a breeze with our mobile app which consolidates your best posted basis opportunities.
No matter what tools you use in your risk management bucket, Indigo Marketplace has the flexibility you are looking for.
Start exploring new, digital grain marketing tools.
All Indigo Marketplace pricing tool transactions are forward contracts for physical delivery with Indigo as commercial counterparty. When contracting with Indigo, you are not opening or operating a futures/options account nor do you have a futures/options position or a commodity pooling agreement. Indigo is not and does not represent to be a commodities trading advisor (“CTA”), futures commission merchant (“FCM”), introducing broker (“IB”), commodity pool operator (“CPO”), or swap dealer.