What is the Merchants Plus Grain Program (MPGP) and why should I use it as a business strategy?
Merchants Plus helps independent elevators originate more bushels, sooner, by offering a valuable producer pricing program to farmers. Farmers can commit production to the elevator and the futures portion of their risk will be priced by a professional pricing team drawing on years of experience and sophisticated trade execution capabilities. The program takes the uncertainty and worry out of pricing a portion of your crop and allows you to participate in OTC and option strategies.
Are my competitors using programs similar to the MPGP?
Most of the major grain traders now offer similar programs, typically through cash contracts that require delivery to their own elevators. The FCStone Merchant Services (FMS) program allows independent elevators to compete and originate bushels that they would otherwise lose and allows farmers to diversify their pricing and counterparty risk.
Is the MPGP difficult or time consuming to manage?
No, farmers can contract to deliver grain with the elevator as usual. Simply notify the elevator within the signup window that you would like to participate or according to whatever processes the elevator has arranged. The elevator will notify FMS of the total volumes and FMS will go to work pricing. Regular updates will be available but nothing else is required until the program is completed and you receive your final futures price.
Why should I work with FCStone Merchant Services, LLC (FMS)?
FMS is an established Agribusiness service provider and part of an INTL FCStone Inc. family of businesses with decades of experience in the Ags sector from freight to futures brokerage to OTC markets. We pride ourselves in knowing our customers’ business and sitting with them on the same side of the table as we help manage price, volatility, and liquidity risk. FCStone was the first non-bank swap dealer and has vast knowledge of the global OTC and options space. We have a proven track record of expert execution and insightful analysis—and have earned a reputation as a trusted and transparent partner. Dealing with the FCStone name provides the confidence that you are dealing with a stable industry leader and Fortune 500 company.
This is not an offer to buy or sell any derivative. FCStone Merchant Services, LLC trades in a variety of physical commodities, and offers customers services to help manage the risks associated with their physical product. Trading over-the-counter and exchange-traded derivatives is not suitable for all investors and involves substantial risk. FCStone Merchant Services, LLC’s affiliate, INTL FCStone Markets, LLC (“IFM”), a subsidiary of INTL FCStone Inc., is a member of the National Futures Association and provisionally registered with the U.S. Commodity Futures Trading Commission (“CFTC”) as a swap dealer. IFM’s products are designed only for individuals or firms who qualify under CFTC rules as an ‘Eligible Contract Participant’ (“ECP”) and who have been accepted as customers of IFM. Any recipient of this material who wishes to express an interest in trading with IFM must first prequalify as an ECP, independently determine that derivatives are suitable for them and be accepted as a customer of IFM. The material and content contained herein does not create a binding obligation on IFM or any of its affiliates to enter into a derivative. This material does not constitute investment research and does not take into account the particular investment objectives, financial situations, or needs of individual clients or recipients of this material. You are directed to seek independent investment and tax advice in connection with derivatives trading.