Our averaging strategy avoids market lows and captures market highs
Daily Floor Plus offers many of the same features of Pacer® but with the added security of downside price protection. With our price averaging strategy, your final price calculation guarantees the higher of either 1) your established floor price or 2) the average of the daily closing price.
This contract is a great solution for farmers who like a “set it and forget it” approach to grain marketing. You’re guaranteed your floor price, but you also get to stay in the market to take advantage of upside market moves.
When is a good time to use this contract?
- When you want to start pricing new crop grain or grain to be delivered in the future, but you also want to protect yourself from the potential of downside market movement
- When you want to stay in market for an extended period of time but avoid the frustration of trying to "time" the market
What should I consider before choosing it?
- The Daily Floor Plus averaging strategy protects you from selling at the market low, but it inhibits you from selling at the market highs