No Knock Out Laddered Accumulator or PSS Ladder

These prices are for information only and subject to change.  Please contact a grain originator for current quotes.

 

Producer wants at the money protection with upside potential

Current Futures                     $4.80

Protection Level:                   $4.80

Step One:                               $5.20

Step Two:                               $5.60

Start Date:                              10/23/13

End Date:                               11/21/14

Bushels Committed:             10,000

Pricing Periods                      274            Days

Bushels/Pricing Period        36.50

Double up Price                     $5.60          (Euro Double) 

 

  • This agreement will price the committed bushels divided by the number of pricing periods (Eg. 10,000/215 = 46.51/day) using the following terms:
  • If, on the pricing day, the Chicago Board of Trade (CBOT) reference month closing price is below the floor price level, you will receive the Floor/Protection Level for the bushels priced that day.
  • If, on the pricing day, the CBOT reference month closing price is above the Floor/Protection Level, you will instead receive theStep One price for the bushels priced that day.
  • If, on the pricing day, the CBOT reference month closing price is above the Step One price, bushels will instead be priced at theStep Two price for the bushels priced that day.
  • If the CBOT reference month closing price is above the Step Two price, the producer will receive the Step Two price for the bushels priced that day.
  • If the CBOT reference month closing price is at or above the Step Two pricing level on the End Date of this agreement, then an additional amount of bushels equal to your original commitment will be priced at the Step Two pricing level. (In this example an additional 10,000 bu. will be priced at $6.95.
  • A hedge to arrive contract will be issued on the priced bushels at the end of this agreement.

 

 

 * **There is a .05 cent fee for this agreement that will be deducted from the price when the agreement is through pricing.***