Over the last few years, the grain industry has seen an increased demand for innovative, hybrid pricing contracts.  Elevators have turned to FCStone to help design and implement  products that offer their producer customers a pricing advantage as well as giving the elevator grain origination.  FCStone has answered that call with the development of a menu of OTC hedged pricing tools.  This menu of structured products has been primarily utilized by our country grain elevator clients.  However, the uses of these structures have been proven to be successful not only for the producers of agriculture commodities but also for the consumer/user of the grain commodities as well.  

We began to build the menu of products in 2001 with the introduction of the Seasonal Flex Price contract.  This unique producer pricing tool will price the producers grain at the “higher of” two separate and distinct averaging prices.  Additionally, the producer is allowed the advantage of re-pricing his grain during the duration of the structure if markets have exceeded the initial established 1st average. 

Our menu of structured products also includes the recent addition of the Accumulator contract.  This is a product that has been successful for both the producer & consumer.  This OTC swap transaction will allow that producer to have equal quantities of bushels priced every week above the market for no up front cost as long as certain market conditions are met.