Global agribusiness Cargill is launching its ProPricing grain marketing contract for canola in Canada as the first ever contract of its kind for the oilseed in the country.
The ProPricing contract portfolio allowed farmers to put a part of their marketing in the hands of Cargill’s traders, easing the effort required on their part, the company said in a 14 September statement.
“We price the farmers’ grain alongside our own. We connect every day with other Cargill experts around the world to gather the latest trading, weather and transportation information. This takes the daily pricing responsibility and stress off the farmers’ shoulders,” said Cargill’s Canadian merchandising lead Joe Christianson.
In the ProPricing programme, farmers place a percentage of their production into a ProPricing contract, after which Cargill’s trader gather information from the global marketplace to analyse current global prices and develop a marketing plan for the crop.
The farmers receive a weekly performance update on their contracts and payments on set delivery dates.
Cargill’s traders established the futures price for contracted grain during active trading in direct reflection of Cargill’s market bias.
“Farmers who commit a percentage of their canola marketing to ProPricing not only benefit from the trading of the contract itself, but also the insights shared by Cargill’s team. Meanwhile, the farmer is still in control, with the opportunity to price out each week,” Christianson said.
In addition to canola, soyabeans were also included on the ProPricing platform in Western Canada, alongside an expansion on the existing spring wheat contract.