NO KNOCK-OUT WITH FLOOR
No Knockout With Floor Accumulators are typically used when the Futures prices of a cash contract are “high” and you think the Futures prices will trade in a range, but also allowing you to price above the Futures market if we trade below your pricing range.
A No Knock-Out with Floor Accumulator allows you, the producer, to create a Hedge-to-Arrive contract slightly different than the traditional method of creating a Hedge-to-Arrive. A No Knock-Out with Floor Accumulator allows you to establish a futures price range consisting of a ceiling price and a floor price creating a uniquely tailored price range to where you are establishing your Hedge-to-Arrive contract. 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 No Knock-Out with Floor 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.