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| The
CHI Managed Futures Program involves the marketing
of bushels for an elevator during a specific
time period on a discretionary basis using
futures and options. The CHI Managed Futures
Program Contract and any other required documents
must be fully executed prior to participating
in the Program. |
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| Requirements
for Enrollment of Bushels |
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- Enrollment
must take place between January 20th and
March 1st, each year for the current crop
year..
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The agribusiness must execute a Futures
Fixed contract for the current crop year
with a producer, including the exact contract
addendum provided by CHI.
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An Enrollment Form must be completed for
each contract and faxed to CHI. CHI will
confirm receipt and enrollment by signing
the form and faxing it back.
- A
minimum of 50,000 bushels of an eligible
commodity (Spring Wheat, Corn, or Soybeans)
must be enrolled for the marketing period.
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The agribusiness and CHI must confirm
the number of bushels enrolled no less
than weekly during the enrollment period
and once again immediately after the period
has ended.
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| Marketing
Guidelines |
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| CHI
Market Analysts will market the enrolled bushels
at his/her/their discretion using moderately
conservative guidelines. These guidelines
may include (but are not limited to): |
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- Marketing
against resistance points and target levels.
- Marketing
consistently throughout marketing period
and taking advantage of seasonal tendencies.
- Attempting
to keep the average futures price of all
sales above the loan rate, assuming historical
basis levels. If unable, CHI may choose
not to market some or all bushels. The
management fee will not be assessed on
bushels that are not marketed.
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Using options to protect sales or to adjust
to market conditions.
- The
Marketing Window will be as follows
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Wheat- March 1 to August 1
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Corn- March 1 to October 15
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Beans March 1 to October 1
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| Bookkeeping |
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- All
bushels marketed in the Program will be
kept in a separate agribusiness sub-account,
to be used solely for the purposes of
the Program.
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Commission will be charged only on open
positions that are transferred out of
the sub-account at the end of the marketing
period. Exchange, Clearing and NFA fees
will be assessed on all transactions in
the sub-account throughout the marketing
period.
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Margining of the sub-account will be the
responsibility of the agribusiness at
all times.
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The Futures Fixed price will be the average
price of the existing open futures contracts
plus or minus the net gain or loss of
futures and/or option contracts closed
out (offset) during the marketing period.
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The Management Fee of 4 cents per bushels
will be collected by CHI after the end
of the marketing period.
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