How will the Planting Intentions Report affect your bottom line?

The fireworks have just begun!  Understanding your potential risk exposure amidst the market reaction to the USDA planting intentions report can be beneficial to your bottom line.  The GrainBridge Platform What-if Analysis and Matrix Report help provide a clear picture of your potential exposure if markets make a major move. 

The market is expecting a large switch on acreage from corn to soybeans, but how much is anyone’s guess.  In each of the following scenario, we are factoring corn to be steady to down $0.30/bu. at $3.50 Futures.  Soybeans could see a potential drop of $0.50-$1.50, so we’ll focus on the extreme low at $8.20 Futures.

Here is sample operation: A row crop farm is producing 1,100 acres of corn and 720 acres of soybeans, a typical two-thirds corn one-third bean split, with a breakeven for corn and soybeans at $3.45 and $8.75, respectively.

The GrainBridge Matrix demonstrates what this operation looks like if soybean acres increase beyond the 88 million projection and 50% of soybeans are sold for $9.50 cash to-date, a conservative to aggressive marketing approach. Additionally, there is 80% Revenue Protection. At average yields of 53 bushel per acre, there is a small profit of $17 per acre, even if prices fall to $8.21 Futures.

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Now, look at this operation if soybeans get the 88 million plus acres, and in addition to being sold 50% soybeans for $9.50 cash, the producer also has 50% protection with a 10.00 Nov 17 PUT option for approximately $0.65 as of March 20. This provides protection at the current break-even level of $8.75 cash, calculated by a 10.00 put – 0.65 cost of put = $9.35. Taking into account local basis, at -0.60, the cash price equates to $8.75.  Adding a simple put strategy to the mix provides some downside protection on the unsold and uninsured bushels.  At harvest and expiration of the put option, there could be considerable value.

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There are obviously multiple scenarios that can take place and the outcome of each operation is different.  Take time to run your own scenarios to help understand your potential risk exposure.  Other questions and factors you might consider include:
  1. What if I sell more aggressively against my crop insurance guarantee of 80%?
  2. What if the acreage shift isn’t as dramatic as some think? What if it’s only a couple million acres?
  3. What if I have NO beans sold to date?
  4. What if the market has an 88 million acre bean crop factored in already?
For questions or interest in learning more about the “What if Analysis” tools, contact your local GrainBridge provider or support@grainbridge.com.

March 2017 Special Release

Introduction of Flexible Carry + Basis

An enhancement to the Cash sales section in GrainBridge will help producers more accurately value unsold bushels at any given point. The introduction of flexible carry and basis now allows producers to allocate their production using varying futures months and basis levels to reflect when the producer anticipates moving their crop. This feature helps producers see the spread between futures months and calculates a weighted average cash price to accurately value all unsold bushels. If the user chooses to do nothing, the value of the unsold commodity will always be valued against the nearby or current futures month and the default basis entered.

To make adjustments to the price of unsold bushels, click on the Cash sales tab to take you to the Cash Summary. Near the bottom of the summary is a box that reads carry and basis. Select the blue change link to edit the basis and futures month for unsold bushels.

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Select the futures month, basis level (if basis is negative, place a minus sign in front, i.e. -0.20), and percentage of total production that reflect the producer’s sale and delivery intentions.

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Select Add basis until the percentage of total production is equal to 100%.

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GrainBridge calculates the weighted average cash price to value all unsold bushels.

Quarter 4 2016 Release

Introduction of the GrainBridge Matrix

The Matrix will greatly assist producers in their risk management planning as market or yield conditions change. As soon as the producer has created their individual grain profiles and respective plans, they can simply input incremental changes to yield and/or price along to see the impact of meeting both break-even and target revenue goals.

In addition, a producer will be able to estimate the impact of crop insurance by selecting the type & level of coverage to determine the estimated amount of payment they would receive.

By clicking on each individual cell within the Matrix, the producer will be able to see a complete breakdown of the revenue, including: cash sales, value of unsold inventory, brokerage positions, crop insurance, and payments.

q4-matrix-introduction

New Commodity Types Added

Multiple Non-GMO, Food Grade, and Seed commodity types have been added to the “Crop” drop down selection in the “Add crop profile” page. The new commodity types are:
  • Non-GMO White Corn
  • Non-GMO Yellow Corn
  • Non-GMO Beans
  • Food Grade Yellow Corn
  • Food Grade White Corn
  • Seed Beans
q4-crop-profiles

Update to Recording Cash Fees

Producers are now able to input the fees for their cash sale transactions by both at a bushel level or per transaction.

q4-recording-cash-fees

Aggregate Reporting for Live & Feeder Cattle

Additional analysis reporting is now available for both live and feeder cattle. Administrators can simply go to the Reporting tab and select “Commodities.” Similar to Crop analysis, simply click on the link under Clients to review each individual producer.

q4-aggregate-livestock-reporting

Delta

Delta can now be monitored on your options positions. This is an optional functionality that you can turn on for your options positions. Simply click on the “Account” link at the top right hand corner of the screen and on the “Profile” tab, click on the box to the left of “Show Delta” under “Brokerage Settings.” Click on the green “Update” box to save your settings.

q4-delta-settings

GrainBridge has added the delta quantity of bushels and the percentage that you are hedged to the overall production in the “Options trades” section.

q4-delta-options-trades

At the individual trade level on the Options screen, you will find the Delta of the individual trade and the number of bushels hedged.

q4-delta-options-trades-2

Grouping of Options Positions

Another sort option has been added in the “Group By:” drop down box. By selecting “Position” your trades will be sorted by the commodity profile and by the type of position. This will provide additional ease in the tracking and reviewing of your individual positions.

q4-grouping-of-options-positions

Brokerage Import Notation

When importing your brokerage trades, you will be able to add specific notes and/or assign the trade to a particular strategy. This will allow you to capture any pertinent information for your trades along with allowing you to measure the success of individual sets of decisions against one another.

q4-brokerage-import-notation

 

Q1-2016 Release

We are excited to announce the Q1-2016 GrainBridge release!

1. Ability for Administrators to Set-Up New Commodity Profiles When Creating New Users

To help producers to get started on GrainBridge, Administrators now have the ability to create profiles with basic production information when setting up a new user in GrainBridge. Administrators can select the crop commodities (currently corn, soybeans, and wheat) to be created in the producer’s account and the system will add the profile(s) and a basic crop plan (more information on the basic crop plan in release item #2 below). All with little effort by the Administrator! We will continue to add this same functionality to other commodities in future releases.

Admin add profile for client

2. National & University Averages for Yields, Expenses, and Break-Even Targets

When Administrators create profiles as noted above or when producers create their own profiles and go to the Plan module for the first time, producers will have the option to select national averages for their starting points. The producer will have the ability to change these values as well as adding custom expenses if they wish to do so.

Default targets

3. Ability to Track Cash Offers

In addition to tracking cash sales, a user can now track their cash offers by simply selecting the Offer button and enter the offer details as they would a cash sale.

track cash offers

4. Send Scheduled Reports to Multiple Emails Per User

GrainBridge now has the ability to store multiple emails per user. Simply go to the Client module to add an additional email. When scheduling reports for producers, the report will be sent to to each email address on file for the individual producer.

multiple email addresses per client

5. Show Livestock Units Per Head in Addition to Per Pound

In transaction pages and in reports, GrainBridge now provides the livestock production information in per head units along with with the per pound amounts.

6. Ability to Import and Split OTC Trades

For those of you trading OTC’s, you will now be able to import and split your OTC trades before importing them into the producer’s production profiles

7. Back-end small fixes and performance improvements

We have fixed a number of small bugs and performed improvements to the layouts of our reports. Login to your GrainBridge account to check it out.

We build and prioritize items based on your feedback. Please keep it coming!

Q4-2015 Release

Happy holidays from GrainBridge. The Q4-2015 release is out and with it is some new functionality.

1. National and universities averages for yields, expenses, and break-even targets

To speed up the process of setting production profiles and give reference to national and universities averages, we will start showing average yields, expenses and break-even targets that customers can use as a starting point instead of a blank field. The customer will always have the option to change or reset any of these values with their actual numbers at any point.

Default targets

2. Group brokerage trades by strategy

Now you can assign a strategy name to a group of trades and view gain or losses by strategy.

Brokerage trades grouping by strategy

3. Support for brokerage auto import from RCG and Straits Financial Services

For those of you trading through RCG or Straits Financial, now you can connect your brokerage account to auto import trades into GrainBridge.

auto brokerage import from RCG and Straits Financial

4. Production and marketing for coffee

We have added coffee to the list of commodities we support. If you work with customers in the coffee business, GrainBridge now allows you to track and market coffee production.

Production and marketing for Coffee

5. New payment types

Several payment types have been added. You can always create your own custom payments.

New payment types

6. Back-end small fixes and performance improvements

We’ve fixed a number of small bugs and upgraded to new hardware to improve security and performance of the application.

We build and prioritize items based on your feedback. Please keep it coming!

Q3-2015 Release

The Q3-2015 release is out and with it are some new functionality and small fixes.

1. New data point in risk management report

For any unsold amount of your commodity, we show you the price you need to sell your remaining amount at in order to achieve your target price

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2. Fees field and buyer management in cash sales

In the cash sales area, now you can track any fees such as moisture dock and other fees that show up on your sale contract. We added the ability to edit and delete buyers you no longer do business with.

Cash sales fees and buyers mgmt.

3. Splitting trades on brokerage auto import

For those of you who utilize the brokerage auto import, we built the function to be able to split one trade transaction among different clients or among different profiles within the same client. For example, if you bought 20 Dec15 corn contracts in one transaction, and these 20 contracts belong to 4 different clients, you have the ability to split and assign these contracts accordingly when the transaction comes into GrainBridge. Or if you want to assign some trades to “Corn 1” profile and others to “Corn 2” profile, you can also do that.

brokerage trade splitting

4. Track livestock death loss by percent or head count

We added the ability to track death loss in your livestock profiles by percent or by head count.

Livestock death loss

5. Use Sep to calculate Wheat (MGEX) new crop price

When calculating the price of the unsold on new crop, now we are using the September price for the default month instead of the July price.

2015-06-24_14-43-08

6. Back-end small fixes and performance improvements

We’ve fixed a number of small bugs and upgraded to new hardware to improve security and performance of the application.

We build and prioritize items based on your feedback. Please keep it coming!

Q1-2015 Release

GrainBridge applied first quarter updates to their risk management platform on April 13. This release included new brokerage import options and changes to enhance both user friendliness and security.

1. Linked Accounts

linkedaccounts

Administrators can now create multiple client accounts under the same user email. Clients with multiple accounts will have the ability to switch between accounts from a simple dropdown menu  without the need to logout and log back in. Links can be created between multiple existing accounts and also by linking a new account to an existing one.

To link existing client accounts you have, simply go into each of the client accounts you want to link together and assign the same email address to that client. (Click to see the full GB Help article on setting up linked accounts)

2. Import “Fees” column for brokerage trades

Brokerage clients utilizing automatic imports from ADM and RJO now have the option to also auto-import the fees associated with each trade.

brokeragefeeimport

3. Livestock Brokerage Imports

Trades on feeder cattle, live cattle, lean hogs and milk are now available for brokerage clients using automatic import.

4. New View for Basis on Unsold 

When you click on Basis for your Unsold commodities in the Cash Sales screen, you will notice some changes. The bubble that pops up from Basis now allows you to see exactly which futures month your prices are being pulled from and what the current value of your unsold commodities are based on that futures price less the basis you set.

updatebasis

5. Order of profile view

There is now the option to organize profile order on the Profiles page. The order you set will reflect in all the views throughout the application. For example, if you arrange your profiles in the order of Corn, Soybeans, Wheat, then they will appear in that order in Profiles, Cash Sales, Brokerage, and Reports.

orderprofiles

Additionally, a number of security updates were applied and minor flow changes made to improve navigation through the platform.

GrainBridge 4.0 – New Cow/Calf and Dairy Management Tools!

The 4.0 update to GrainBridge contains exciting new features that our team is very pleased to unveil. The changes for this version of GrainBridge were focused around expanding livestock management and enhancing both crop and livestock planning tools, as well as further integrating crops and livestock for those producers who manage both.

Integrated Crop and Livestock Management

One of the first changes that will be seen when logging into GB 4.0 is that there are no longer separate tabs for managing crops and livestock; these are now both found under the “Risk Management” tab.

riskmanagetab

Throughout the program, you will find crops and livestock are now managed side-by-side. This is extremely beneficial for operations that raise both crops and livestock, as the breakeven calculations now truly account for all aspects of the business in one location. On the Summary page, you can get an accurate glance at total revenues and how above or below target you are on all commodities.

cropsummary

You can toggle between Livestock and Crop summary graphs to get a more detailed account of  target vs current values. 

livestocksummary

Crop and Livestock profiles as well as cash sales also now share screens. 

profiles

cashscreen

New Cow/Calf and Dairy Management Modules

The most dramatic expansion of the GrainBridge platform is within the Livestock component, to which we added functions for effectively managing cow/calf and dairy operations.

cowcalfdairyprofiles

These new livestock profile types come into the program alongside our new “expenses per head” section, which is found under the Plan alongside per acre and gross expenses. 

expenses per head

Enhanced Per Acre and Gross Expense Management 

 Along with developing this advanced calculator for “per head expenses” for livestock, our team also revamped the per acre and gross expense sections. Expenses for different profiles are now side-by-side in the Plan, and your breakeven prices are updated on the fly as data is added and edited. sidebysideexpenses

Gross expenses and Income amounts can now be allocated in percentage amounts to particular profiles to establish even more precise breakevens on certain fields or particular commodities.

expenseallocation

Custom expenses can now be placed under a particular expense category, allowing further detail and organization when planning and tracking expenses throughout the year. 

customexpense

The updated look for these Plan screens (for all expenses and incomes) also include more graphs for those who plan best when data can be visualized. Clicking the pie-chart icon next to any expense will show that expenses overall allocations across the operation. 

piecharts

piecharts2

As always, we love to hear feedback on our program, especially when we bring in new features. As you explore these changes and new tools, never hesitate to get in touch with comments and ideas- either by commenting on the blog or through contacting our Support Team!

Welcome to GrainBridge 4.0.

What’s New with the Summer 2014 Release

The August 2014 Release for GrainBridge was an update that went live for all customers on August 7, 2014.

New Features

This release was largely focused on improving functionality within the cash sales section of the application. We introduced the ability to establish cash on portions of Basis, HTA and NPE contracts. We also added the ability to attach brokerage positions to cash sales allowing users to view the overall value with both positions combined, all on one screen. In addition, a simple delivery tracking feature was added to manage bushels delivered on a cash sale. The last major enhancement is advanced filtering options within the cash dashboard. These changes and other additions are listed and detailed below.
  • Clean and simple “Add cash sale” screen. The screen for adding a cash sale is now more streamlined. At the bottom of the screen, you will see “Show more options.” This link is where you can expand the view to find and add the Sale Date, Ref ID & notes.1
  • Improved cash sale view mode to reflect the idea of a “cash contract.” 2
  • NEW: Ability to set partial cash on a portion of a Basis, HTA or NPE contract. Previously, offsetting basis and HTA contracts had to be achieved by editing the original Basis or HTA contract and creating a new cash contract. For example, if you had 15,000 bushels of corn on a basis contract and then wanted to put 5,000 on a cash contract, you would have to edit the basis contract and remove 5,000 bushels and then add a new cash contract to put them in.With this release, partial cash can be set on these contracts to better reflect and track your positions. Your cash summary will reflect these changes as they are made; the original contract amount will be shown, but with these changes attached.3
  • NEW: Attach brokerage positions to cash sales. Brokerage positions can be attached to open positions or closed positions.  NOTE- when a position is offset or closed the link or attachment to a cash position is removed because a new position has been created (closed position).  You may want to wait to attach the positions once they have been closed. 4
  • NEW: Track delivery on cash transactions. You now have the ability to track delivered amounts in the cash section. This feature can be accessed via the “View” link on the right side of a cash sale. This process will show delivered amounts, dates, and how much is yet to be delivered.5
  • NEW: cash sale filters.  In addition to the standard filter in the cash list, there is now an advanced filter. This filter allows sorting by one or multiple criteria.8
  • NEW: “Print sale” option to print the cash sale.6
  • Risk Management Report Summary Totals. The risk management report provides a new column with a weighted average for each cash transaction type.9
  • Improved functionality with copying per acre expenses in the Plan section. You are now able to copy per acre expenses from all profiles with the same base commodity. Previously, you could copy expenses from a crop type and year, but not the per acre expenses of an individual profile. With this update, you can choose a particular profile to copy the expenses from. This new functionality is particularly helpful for those managing field-by-field.11
  • NEW: Organization for the Futures and Options: Futures and Options can now be grouped by “Month”.  Notice that Futures and Options are now listed under the “Brokerage” tab on the Dashboard.12
  • Auto-Import of short-dated options:  The auto-import process of short-dated options is currently being integrated by specific firms on request.  If interested please contact support@grainbridge.com for further details.

Schedule and Links for GB Producer Webinars

Listed below are the dates, times, and registration links for all Producer webinars that we will be hosting throughout June and July.

June Webinar Sessions

July Webinar Sessions

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