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Introducing the 2020 Averaging Contract

Averaging contract pros cons

In 8 out of 10 years, the Averaging Contract results outperform the market during harvest. This is a contract that is entered into during the winter for delivery during the following harvest. It’s also the one we most often hear “I wish I would have put more bushels in that contract!” 

Each day that the Board of Trade is open during the Pricing Period, we will sell a portion of the enrolled bushels at the close of the day. At the end of the pricing period, you will effectively have a Futures Only contract. Basis will need to be set prior to the end of your delivery period. There is a 4 cent per bushel fee, and this is deducted when the cash contract is written.

We offer this contract for both corn and soybeans. 

Corn:

  • 5,000-bushel minimum and increments.
  • The pricing period is from March 16 through July 10, 2020.
  • The 2019 December futures average was $4.0846 and the 2018 average was $4.0469.

Soybeans:

  • 2,500-bushel minimum and increments.
  • The pricing period is from April 20 through July 24, 2020.
  • The 2019 November futures average was $8.92 and the 2018 average was $9.49.

The sign-up deadline for both of these is February 28, 2020. 

We believe this is one of the best marketing alternatives we offer and we encourage you to contact your local Grain Marketing Advisor with any questions and concerns.