United Bio Energy Offers Online Cash Grain Pricing Platform
East Kansas Agri-Energy is the first ethanol plant to launch the Dynamic Pricing Platform.
Compiled by staff
Published: Nov 9, 2005
Farms Technology's Dynamic Pricing Platform, an online grain procurement application, is now available at select United Bio Energy locations, beginning immediately with East Kansas Agri-Energy in Garnett.
The DPP gives producers the ability to create, manage and monitor target priced cash grain offers that are evaluated in real-time with every tick of the futures market. Growers no longer need to be by a phone to call their local buyer at the right time on the right day to get the best prices. In addition to target offers, a variety of online marketing tools are available around-the-clock. These include: average pricing contracts, futures fixed contracts, basis contracts along with historical cash pricing data, cash bid sheets, and local buyer commentaries.
The ethanol industry is expanding the domestic cash grain markets and changing traditional grain movements. "Progressive buyers, like EKAE, who see value in offering corn and grain sorghum growers the ability to service themselves in a 24-7 format, are using the Internet and the DPP to offer additional levels of cost-effective customer service," says Farms Technology, LLC, CEO Jason Tatge. "Progressive growers are seeking out new markets. If they don't yet have the ability to sell their cash grain online to local buyers, they're asking them to add that capability. The DPP has expanded rapidly because many growers are requesting the service from local grain buyers."
Ron Hansen, vice president of United Bio Energy Management, Wichita, KS says after listening to their ethanol plant partners and their corn suppliers, DPP technology allows both sides of the supply chain with a way to service more customers in a cost-effective manner. "Our suppliers can offer us their grain at the cash price they choose, and really put the power of the market to work for them online at anytime, day or night, when it's most convenient," Hansen says.
Producers can learn more about online cash grain sales opportunities using the DPP service at www.farmstech.com, or by directly contacting East Kansas Agri-Energy grain buyer Tom Wapp at (316) 616-3558.
For more information, read "The return of online grain trading" from Farm Futures' September 2005 issue.
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