Explanation of Contracts: Accumulator

By Lindy McMillen, Grain Originator - Dighton Area

Your Garden City Co-op Grain Team has the ability to customize a variety of over-the-counter (OTC) products to fit your operation’s grain marketing needs. One of the contracts that we offer is an accumulator. While there are a variety of ways that this product can be built and customized, we typically build them with a guaranteed quantity and Euro Double-Up. Accumulators allow the farmer to price bushels above the current market in exchange for an offer of additional bushels if the market is above the accumulation level at expiration. Here’s an example of how that could work.