Plan for both the expected and the unexpected.
Strategists – be it in chess, war or business – understand that the future can unfold in a number of potential scenarios. Those who excel make sure they are looking several steps ahead. They plan for both the expected and the unexpected.
This strategic approach is what’s going on behind the scenes when our Market360 team meets. Using math and in-depth analytical tools, they calculate possible price scenarios, consider every useful risk management tool, and hammer out recommendations.
The goal of this team approach is to make sure we have a complete picture of what could happen in the market. Our team anticipates how scenarios could unfold and helps position you for them.
As you prepare for whatever the market may do, we help you become a disciplined, structured and consistent marketer.
You drive. We help you navigate.
Market360 answers some of the toughest questions.
What tools to use?
Which cash and hedging tools should you use? How should you blend and balance all tools for maximum effect? What about elevator or milk plant transactions? We help you make all of these decisions. We’ll help you understand how each tool works. Our risk managers create the recommendations; you have the final say.
How to decide when to take action?
When do you make a cash sale? When do you enter a hedging transaction and when do you exit it? A disciplined process ensures that the emotions of the market don’t sabotage a carefully thought-out, strategic plan. With Market360, you see potential effects of your decisions in advance by modeling the full range of market potential – both the upside and downside. Then, we help you build solutions and set triggers that help you build a strong average price for your production.
How much to sell?
Do you sometimes find that good decisions are sabotaged by selling too little? Or too much? Market360 risk managers help you make volume decisions that make a material impact on your business.
How to make sense of market noise?
Data overload can be the enemy of disciplined decision-making. It can lead people to sell when they should wait or wait when it’s time to make a disciplined sale. Market360’s risk managers take a disciplined, math-based approach to the market to help eliminate the noise and to focus on the information and decisions that matters.
We help you build a favorable average price.
Successful price risk management is not about market timing; that is, selling all of your production at the market high price. Our goals? Minimize the separation between your weighted average price and the market price in bull markets, and maximize the separation in bear markets. Over time, this offers more price predictability, less volatility, and a favorable average price.
By managing price risk in this way, you can reap dividends over just taking the market price, position your operation against market bottoms that cut into profitability, and maintain budgets.
Active management of your commodity costs.
This graphic illustrates price management done well. It’s not about capturing the top of the market. It’s about building a favorable weighted average price throughout your selling cycle.
It’s about building a favorable weighted average price.
Your revenue for any year isn’t based solely on your first sale, or your second, or any one particular sale. It’s what you receive for all of those sales. And if one sale was particularly large? That large sale has a huge impact on your revenue and the weighted average price you receive for the year, because a big portion of your revenue is weighted to that sale. That’s why focusing on your overall weighted average price is so important.
Market360’s focus on weighted average price paints a picture of your revenue potential in the future, as well as how you are doing today. By using math and looking at your priced, hedged, and unpriced production, you understand what you might be giving up in upward potential in order to protect yourself from downward price risk. Most importantly, it helps to develop strategies that help you manage your operation and that give you the confidence of understanding the impact of your decisions in any market environment.