Bring home an average of the daily futures closing value
Pacer helps you keep pace with the fast changing markets so you know you’ll bring home a solid price. You also have the freedom to price out your contract at any time during the pricing period. This grain contract is a great solution for farmers who want to reduce risk by spreading out the time period of when to sell their grain. It’s also a useful tool for starting new crop sales capturing spring rallies.
When is a good time to use this contract?
- When you want to stay in market for an extended period of time but avoid the frustration of trying to "time" the market
- When you want to reduce overall futures price risk
- When you believe you can take advantage of historical price seasonality
What should I consider before choosing it?
- The Pacer averaging strategy protects you from selling at the market low, but it does not let you sell at the market highs
Keep pace with a fast changing futures market
The following are 30 year historical charts for wheat, canola, corn, and soybeans. These charts show the price patterns for each year as they relate to the highest price of that year (100%), with all 30 years blended together to form one line on the chart.
Prices are generally stronger in the spring compared to the fall. This is because as the growing season progresses, there is weather and production risk each year. This risk premium continues through to July until the crop conditions become more certain.