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Physical Commodities Setup

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Physical Commodities Setup:

In this section, we have provided a template in which a hedger, such as a farmer, can keep track of their costs and profits so they can know the best time for them to sell.  To open the physical commodities setup, select the View menu, and then select "Physical Commodities Setup". This will open the Setup Window. 

Quick Position Entry:


Commodity Custom Description: The name of your commodity, or a nickname of your choosing.

Commodity Position Side (Long): You are the producer of a commodity (IE: a farmer)

Commodity Position Side (Short): You are the consumer of a commodity (IE: a supermarket)

Commodity: The commodity you will be trading

Marketing month and year: The contract month and year you will be trading on.

Number of Acres: The number of acres of this particular commodity being grown

Average Yield Per Acre: The number of bushels you expect to take in from each acre of land dedicated to the commodity.

Total Bushels (bu): The total number of bushels per acre times number of acres. This will be automatically calculated if you have filled out the first two fields.

Premium/Discount Multiplier: Definition coming soon.

Breakeven Cost (acre): Choose between per acre or per bushel or pound. This is the amount that you need to make on each unit to cover your costs or “break even”.

Basis: The difference between the selling price in your local area grain co-op or livestock auction house, and the price for which the commodity trades on the exchange. Exchange price is international, and the basis is the difference between the exchange price and your local price.

Save: Saves the information that you entered

New: Clears the information to start a new position entry.