Art of Grain Merchandising

6 Steps to Trust but Verify Grain Business Position Reports

Posted by Jeff Reardon

Sep 22, 2015 11:00:00 AM

“Trust but verify” is a Russian proverb Ronald Reagan made famous, but risk managers, CFO’s and grain company lenders live by it today.

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Topics: Grain Elevator Financing

Navigating The Bermuda Triangle of Grain Repos and Grain Swaps

Posted by Jeff Reardon

Aug 19, 2014 11:00:00 AM

This week's blog will answer some frequently asked questions regarding some alternative grain company financing tools. For a general overview of these tools, please refer to our previous blog posts on Grain Repos and Grain Swaps.

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Topics: Grain Elevator Financing

Grain Elevator Financing Tip: Over The Counter Commodity Futures Swaps

Posted by Jeff Reardon

Aug 12, 2014 11:00:00 AM

Volatile prices and the difficulty accessing credit during peak financing periods opened the market to provide commodity futures swaps as a method of grain elevator financing.

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Topics: Mark-to-Market, Grain Elevator Financing

Grain Elevator Financing Tip: Inventory Repurchase Agreements

Posted by Jeff Reardon

Aug 5, 2014 11:00:00 AM

Volatile prices mixed with a need to build working capital and equity pushed inventory repurchase agreements into the grain elevator financing and Mark to Market discussion for grain companies.

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Topics: Mark-to-Market, Grain Elevator Financing

Grain Elevator Financing Tip: Financing Forward Contracts

Posted by Jeff Reardon

Jun 24, 2014 11:00:00 AM

Forward contract financing has become an essential piece of the grain elevator financing package. The modern day elevator must be able to help producers capture high prices during any season and lock in profitable selling opportunities when the market is asking for grain.   The total purchase and sale contracts will be broken down on the position report by delivery period and contract type. For multi-location grain companies the location will also be specified.

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Topics: Grain Elevator Financing

Grain Elevator Financing Tip: Borrowing Base Reconciliation

Posted by Jeff Reardon

May 29, 2014 11:30:00 AM

Where much is given, much is required and this is certainly true with collateral audits.  The increased grain elevator financing requirements have brought a much higher level of operating loan documentation. This section will show how to bring the essential paperwork together and show the thought process behind each form.

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Topics: Grain Elevator Financing