Coming soon!
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.
Another advantage of the hedging module is the ability to track your inventory and profits by placing physical cash orders against your commodity. This allows you to set delivery dates and track inventory, as well as keep track of cash accounting.
Physical Cash Orders: You can place cash orders on the contract by pressing the Buy/Sell Cash button on the toolbar. This will bring up the “Place Physical Commodity/Forward Contract Transition.” Window. This window will contain all of the fields that need to be filled out to place or adjust your order.
Placement Date: The day the order is being placed
Delivery Date: The day the order is set to be delivered.
Delivery From/To: The source or destination of the delivery
Buy/Sell: Allows you to select whether the order is a purchase (you buying the commodity) or a sale (you are selling the commodity).
Qty: Quantity or amount of item being sold. (Example: 200 cwt of cattle)
Price Type: Allows you to choose between custom price and cash price.