Commodity Blog
Nov 22 2022
Automated Hedging Portal for Grain Merchandising
cmdtyView Hedge Management is an automated hedging portal for grain merchandising that alleviates the risks associated with cash transactions between producers and merchandisers.
cmdtyView Hedge Management enables users to autohedge for grain. The basic premise of Hedge Management is to link cash and futures orders so that any time there is price movement on the cash offer, the hedge order will be adjusted dynamically allowing the elevator to remain fully hedged. In addition to auto-adjusting hedge orders, cmdtyView Hedge Management also provides a tracking mechanism whereby the elevator can view their current futures and cash positions across different commodities, expirations, and delivery dates.
Creating a bid in cmdtyView is simple. To create a new bid, click on the New Bid button in the top left corner of the Bids window.
The Add Bid dialog should appear where you then select your location, commodity, delivery, and price as shown below. Grain prices can be entered as a fixed price or as a basis and users can enter a custom description in the Description field. Basis values can be positive or negative and should be entered as whole numbers where -12 is equal to -0.12.
Note that cmdtyView will only allow one bid per delivery period so if you try entering a bid within an existing range, it will be rejected. Once you’ve successfully added a new bid, you may then begin submitting grain offers on behalf of the farmer as the bid is now ‘tradeable’. It’s that easy!
cmdtyView is connected across the grain supply chain, including to farmers who are able to submit offers via Barchart’s elevator-branded mobile apps, as well as to grain accounting and ERP providers for managing contracts, tickets, and positions; and to futures brokerage firms and exchanges for execution and clearing.
Put an end to paper notes and phone calls regarding your grain purchases once and for all. Manage all of your hedging activity digitally in one spot with our automated hedging portal for grain merchandising. The integration of hedging into cmdtyView eliminates the need for multiple systems, making cmdtyView an end-to-end platform for commodity trading.
Ready to get started? To learn more or to request a demo of cmdtyView Hedge, please click here or contact us at commodities@barchart.com.
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