What is Portfolio Builder?
Portfolio Builder establishes the futures price component of your grain contract by combining four types of strategies into one contract. Each component automatically executes during key times throughout the year. This allows you to diversify your grain marketing plan, and take advantage of market movements during your busy seeding season all the way through harvest.
How Portfolio Builder Works
The power of diversification isn’t just in the number of different grain marketing contracts in a plan. It’s diversifying across seasons, grain marketing goals and market biases.
- The Average component prices you grain daily during the spring and early growing season, when prices historically are higher than other times of the year.
- The Target component sets a target price based on estimated production costs adjusted for profitability and automatically prices if markets reach the target price by the end of June.
- The Enhance component provides opportunity to potentially price a portion of your grain at a premium to the market.
- The Floor component establishes a minimum price you receive for you grain during the volatile growing season, with the potential to capture higher prices through harvest.
The Power of Diversification
You already practice diversification on your farm by how you select different seed varieties, fertilizers, and crop rotations. Adding diversification within your grain marketing plan can help improve your profitability over time. Applying a variety of risk management strategies can help you take advantage of changes in the marketing environment, and adds protection against the unknown
Portfolio Builder is a solution that acts as the "easy button" for your grain marketing plan.
Watch the video and click below to learn more or contact your Cargill rep.