Find out how Cargill makes its trading decisions.

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Find out how Cargill makes its trading decisions 3

Find out how Cargill makes its trading decisions 4


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Cargill ProPricing®:

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With more than 150,000 employees worldwide constantly watching the smallest movements in the market- for example, a dock strike in Brazil, or a change in U.S Ethanol policy- Cargill has the resources and perspective to capitalize on market movements.

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According to Cargill, ProPricing® is the world’s largest farmer marketing contract.

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The Profactor is based on your personal risk assessment and marketing style.

To reap the full benefits of ProPricing® contracts, you need to know the right amount of bushels to enroll each year. Knowing the right percentage of bushels, or what we call the ProFactor, helps give you the right balance of risk management across your complete portfolio of grain contracts.

Your ProFactor is based on your personal risk assessment and marketing style.

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Do your Profactor by clicking here

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(It is basically a Forward +  Cargill has the task to make the final trading decision to sell/execute)

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ProPricing® is a grain marketing program that gets Cargill’s grain marketing experts working for you.

Unlike other contracts where you make all the decisions, ProPricing lets you put the marketing reins in the hands of experts.

Commit your grain to ProPricing, and let Cargill’s expert merchants actively trade it on your behalf.

If you need help planning your retirement, you talk to your financial advisor. If you need legal advice, you talk to a lawyer.

If you need a leg up in navigating grain marketing, you should talk to the pros at Cargill. With our global perspective, you get a competitive advantage that makes the most of your grain, in both the ups and downs of the market.

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Why do you need ProPricing?

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When you commit your grain to ProPricing®, Cargill employs simple futures and complex options to determine a price for your grain whenever the market presents trading options whenever the market presents trading opportunities.

In just the last year, Cargill merchants made nearly 10,000 individual trades marketing the grain across the various ProPricing contracts.

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Performance:

[Below you can see the performance of Cargill Propricing over the benchmark (Future + premium/ – markup)].

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Cargill ProPricing contracts exceeded the average farmer’s selling price 5 of the last 6 years.

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ProPricing contracts exceeded the average farmer’s selling price 6 of the last 6 years.

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How Cargill Propricing® works ?

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1. Sign Up

You meet with your Farm Marketer and commit to sell a specific number of bushels through a ProPricing contract based on your marketing goals.

The Advantage Factor questionnaire can help with this process.

With this Advantage Factor as a guide, your Cargill Farm Marketer will then help you find the right mix of 1- and 2-year contract options to best fit your marketing needs.

2. The MarketPros Go to Work

Based on the contracts you select, the Cargill MarketPros trade your grain as if it were their own. Trading decisions are made with expert guidance from the Cargill World Trading Unit in Geneva:

  • Cargill sources around the globe deliver critical, timely information
  • The Cargill World Trading Unit  tracks and analyzes incoming data on supply, demand, weather, shipping and more
  • The Cargill World Trading Unit regularly delivers actionable trading plans to the Cargill MarketPros
  • The Cargill MarketPros make final trading decisions with the goal of getting you the best price for your grain

3. Performance Updates

You receive weekly performance updates on your ProPricing commodities. You can also log in to see the status of your contract at any time. Regular webcasts from the MarketPros keep you informed on their trading decisions.

4. Final Payment

You receive the payment for your bushels based on the MarketPros performance and your set delivery date of the grain.

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Farmer Profilesblnc

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farmers profiles

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Profile Perspective

ProPricing allocation is just a portion of a strategically planned marketing program. Diversification is critical to annual marketing success, which is why Cargill offers a variety of contracts to match your risk bias. In addition to ProPricing contracts and cash grain sales, consider adding one or more of the following contracts to your marketing mix:

  • Pacer contracts based on market averages
  • Premium Family contracts that offer a price premium for committing future grain to Cargill
  • Market Family contracts that let you take a more active approach to the market.

[Any variant of the forwards has a physical delivery within a defined time-frame].

[At the confirmation, it is important to review the terms and conditions that will govern the sale and purchase of grain, typically attached with/ printed behind the confirmation document, carefully check all specifications and upon finding any material differences, promptly notify them to Cargill].

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More details can be found on Cargill Propricing or by contacting a Cargill Representative.

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 © 2016 Navigating the commodity markets with Freight and Spreads

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