Managing basis risk is a cornerstone of ATI’s expertise. Our advisors work with you to:

• Identify the best opportunities to lock in favorable basis levels.
• Use hedging strategies that balance cash and futures positions.
• Leverage spreads to optimize carry costs and maximize margins.

We help you navigate the intricacies of basis trading with confidence.

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ATI’s decades of experience, personalized approach, and deep-rooted expertise in grain marketing make us a trusted partner. We combine industry knowledge with innovative tools to create a customized plan for each client.

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A marketing plan is a strategic approach to selling your crops, and it involves making many important decisions. When should you sell? Where should you sell? How should you sell, and at what price? A marketing plan helps you manage the uncertainty of market prices, as well as external factors like weather conditions, financial market volatility, and even global events that may impact your farm's profitability.

Having a marketing plan is essential for optimizing revenue by reducing financial risks. The Risk Advisor Team at Advance Trading is here to help you create your plan—whether it's your first time or you're seeking an objective review of your current approach. Contact Us

Reducing risk is primarily about mitigating price fluctuations: Financial instruments such as futures, puts, and calls can help lock in prices in advance.  Losses incurred by falling cash market prices can be offset by gains made from the futures and options on futures.   Conversely, if cash market prices rise beyond expectations the futures and options on futures will decrease in value but will have provided peace of mind for market uncertainty.

Some  of the basic building blocks of commodity trading – tools of the trade include:
 

• Futures Contracts: These contracts can help you lock in a selling price for your crops before harvest, which protects you from the risk of falling prices.
• Put Options: This option allows you to set a minimum price you will receive for your crops. If prices fall below this threshold, you can exercise the put to sell at the agreed price, limiting your loss.
• Call Options: A call option can be used if you want to benefit from rising prices while having some level of protection.

These are just the basics, but placed in the hands of a trusted risk advisor they can be quite effective for establishing or advancing your marketing plan.

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Market Volatility - Grain prices can fluctuate due to global supply-demand factors, weather conditions, and trade policies. Downmarkets can create a sense of urgency, but these strategies offer ways for you to manage risk and take advantage of potential future opportunities.

 Risk Management - These strategies allow you to manage price risk and volatility. Whether it's through locking in a minimum price (selling cash and buying a call or buying a put) or by staying out of the market temporarily, you have tools available to you to avoid selling at a loss while still being able to capitalize on potential gains if the market recovers.

Cash Flow and Liquidity - In tough markets, you need to maintain cash flow for operational expenses. Selling cash crop immediately or buying options can help you secure finances or hedge against further price declines, providing necessary liquidity in a difficult market environment.

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