Selective Hedge was designed to enhance your firm’s value to your customers by providing them a tool to track and measure the performance of their operations. Selective Hedge can track up to three different crops (and multiple variations) over three different years, enabling producers to view the total value of their crops or break down the value of each crop separately. Selective Hedge will also track the value of any hedge position on a daily basis. Producers can use this information to evaluate their progress toward their current year revenue goal, as well as decide what crops to plant in subsequent crop cycles.
In addition to the daily value tools, Selective Hedge encourages producers to challenge a sales strategy by modeling price and yield combinations. This ability allows them to test various scenarios to determine the best path for marketing their crops. This feature permits them to ask the “what if” questions and quickly see the potential answer. In today's complex and hectic marketplace, information comes at the producer from many different directions and can often cause information overlaod. Selective Hedge takes all of the necessary information and provides a simple and clear picture of where your producers stand on a daily basis.
Through a license agreement with FCStone Selective Hedge, your firm can be on the leading edge of providing the necessary information with management and marketing tools to assist the producer in locking in a profitability floor. Selective Hedge will give your company an edge in promoting existing lines of customer service, such as grain origination, crop input sales/management, crop insurance, marketing/brokerage, and financing. Selective Hedge will provide the foundation for your company becoming a profitability consultant through its innovative "toolkit," in addition to a support staff with significant experience in the grain marketing business.
With INTL FCStone’s Selective Hedge, your clients can:
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Daily Revenue Snapshot
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Use the Daily Revenue Snapshot to track up to three separate crops in three different years, showing the total value of their crops updated on a daily basis. It also lets them track the performance of any of the three crops individually as well as the value of any hedge position.
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Transactions Review
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Use the Transactions Review to track all their cash grain sales, based on delivery location, and hedge positions and have this information update their revenue snapshot. Options positions can be applied to specific cash transactions.
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Operations Review
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Use the Operations Review to enter up to three years of details about your client’s elevator and processor partners as well as crop insurance and storage capacity information to calculate the cost of production to obtain an accurate, per acre or per bushel cost and establish a target revenue goal.
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Charting
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Use Charting to illustrate estimated crop revenue, revenue floor and ceilings, the cost of production including option costs, revenue goals and insurance guarantee and potential indemnity. The charts can also show the benefits or possible risks of potential hedge strategies, compare marketing strategies weeks, months and even years in the future by modeling price, yield and crop insurance prices. |
When used in combination with a professionally designed risk management program, INTL FCStone’s Selective Hedge is a powerful tool to aid producers in protecting and maximizing their margins. Contact Mike Wanninger at +309-664-5604 to learn more about becoming an authorized Selective Hedge provider.