By Alexandra Henley, Customer Success Manager, North America
Across the nation, farmers and elevators work in trusted relationships centered around a fluctuating marketplace. This is why as a farmer, it’s important to know the current market price of your product in order to make knowledgeable decisions that drive the productivity of your farm.
Figured integrates with DTN (Data Transmission Network) to help farmers stay informed and relevant. With direct access to current commodity insights, farmers can set their crop’s market price to the state and elevator of their choice!
The market price value provided by DTN is updated on a daily basis and can be applied:
- Within the Crop Season Dashboard
- When entering a Harvest Transaction
- When entering a Crop Sale
🌽 Crop Season Summary Dashboard 🌽
Farmers and advisors can now better plan when to market their grain with a clear understanding of their local basis. An accurate bias gives partners a way to evaluate and keep their plans up-to-date with the latest information.
Basis = Cash Price - Futures Price
*At a specific point in time
(The difference between the price of a given commodity in a local market minus the price of that commodity in the futures market)
- The smaller the difference between the cash price and future price indicates there is a lower cost associated to getting the product to market
- The larger the difference between the cash price and the future price indicates there is a higher cost associated to getting the product to market
Other factors play into this equation such as transportation costs, storage and interest costs, supply and demand and geographic variations. So rather than selling their grain at the time of harvest, farmers can assess these factors and wait to sell their grain when the basis is narrow.
The direct connection to market pricing is important and necessary, and Figured’s integration with DTN brings forth a real-time pulse on the agri-industry.