Let this helpful tool monitor local markets for you
A Grain Pricing Order (GPO) is essentially an order to sell a specified amount of grain if the market reaches a desired price level within a given time period. It’s a great solution for farmers who have a particular selling price in mind but don’t have time to monitor local markets. And for farmers who sometimes let their emotions control their marketing decisions, a GPO is a great way to bring more discipline and consistency to pricing.
When is a good time to use this contract?
- When futures prices are volatile but you think the market will increase
- When you want to sell for more than the market is currently offering, and you think there’s a chance the market will reach your desired selling price before it’s time to deliver
What should I consider before choosing it?
- The market may reach your target price, but there’s always a chance it will continue increasing even after your GPO has been executed
- The market may not reach the target price and your grain will remain unpriced
- There’s also a chance the market will get close to your predetermined price but not quite close enough to trigger the GPO. If the market then decreases again, the experience can be very frustrating.