Columbia Grain is here to help you cultivate greater returns. Our extensive expertise in contract execution is backed by over 40 years of experience, helping producers like you to navigate changing market conditions around the world.
KNOCK-OUT ACCUMULATOR WITH PARACHUTE
Knock-Out Accumulator with Parachute are typically used when the Futures prices of a cash contract are “high” and you think the Futures prices will begin to trade lower along with placing an “escape clause” if the Futures prices do trade to a predefined level.
A Knock-Out Accumulator with Parachute allows you, the producer, to create a Hedge-to-Arrive contract slightly different than the traditional method of creating a Hedge-to-Arrive contract. A Knock-Out Accumulator with Parachute allows you to establish a Hedge-to-Arrive over the initial futures level and have an “escape clause” that will price out the unpriced balance of the original bushel amount at a price you select, if a pre-defined futures level is realized. YOU determine the MINIMUM* bushel amount you would like to sell over a pricing time period that YOU define.
Structured Marketing Tools can be highly customizable with varying premiums that are determined from the inputs that you create – giving you an optimal risk/reward return on your sales. A Knock-Out with Parachute Accumulator will create a Hedge-To-Arrive contract that will be priced evenly every day over a time window that you select – giving you the ultimate premium to the initial futures markets. Be sure to give your local Columbia Grain Merchandiser a call to go over all the potential premium products that we can offer.
This material should be construed as examples of potential uses of marketing tools offered through Columbia Grain and not as trading advice – marketing grain involves substantial risk; you should fully understand that risk before contracting your grain in any marketing tool provided through Columbia Grain – Columbia Grain reserves all rights under the NGFA. *Double up Feature on Accumulator contracts can be calculated on a daily basis or on the final day of the contracting time frame established. Minimum bushel amounts can potentially double in quantity – you should fully understand the potential double up risk prior to using structured accumulator contracting options. Please consult with your local CGI merchandiser on cost associated with this contracting option.