Producer Forward Contracting

Producer Forward Contracting

March 23, 2021

Forward Contracting Tracker is a web-based tool that enables Futures and Options trading based on managed Forward Contract Programs.

Project details

Forward contracting is a way for producers to set the price for milk to be delivered in the future. Producers manage risk without the cash outlay of maintaining their own futures account. It is an arrangement between producers and cooperatives/plants.

In almost every case, the milk buyer desires to off-set the commitment by taking an off-setting position in the futures and options marker or the OTC market.

Key Features

  • Daily market prices
  • Producer interaction
  • Order execution
  • Futures order placement (to the CME)
  • Hedge balance management
  • Buy or sell Options
  • User management
  • Reporting

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