Producers pledging bushels to Professional Grain Marketing Services, LLC (ProMark Grain) will sign up for a specific number of bushels of wheat, corn, and/or soybeans.  They will also choose up to three potential elevators as delivery points or you can have one of ProMark’s advisors call you to make the sale.  When advised to make a cash sale, ProMark Grain will direct the crop to one of the potential elevators.  It is important to note that all cash sales that ProMark makes will be made in the producers' name.  Producers will also indicate whether or not to participate in any re-ownership opportunities, and will designate how much of their grain will be marketed by each of the advisors.  Cash sales will be made between the producer and the elevator.  When the elevator settles with the producer on these cash contracts, the elevator will pay the producer the value of the cash contract less any hedging losses.

Putting the Plan Into Action

It is the belief of ProMark Grain that a quality, diversified portfolio approach will give us the best opportunity to achieve our goal of pricing the pledged bushels in the top one-third of the marketing year's price range.  ProMark Grain's marketing managers will choose a portfolio of diversified advisors for you.  It would be ProMark Grain's recommendation to have each of the advisors manage 20 to 40% of the bushels.  The four different advisory programs to choose from are as follows:
The Breakdown of Advisors

·         Jerry Gulke's Strategic Marketing Services:  This is a premier program that is both technically and fundamentally driven.  ProMark Grain believes that Jerry Gulke is consistently one of this country's premier marketing advisors and will give us a strong chance at meeting our marketing goal.  His market philosophy, as we see it, is that the markets are ever changing and our approach towards marketing must be flexible.  Hedging losses are possible.

·         Sell and Defend:  Typically this strategy uses long-term fundamentals to establish hedges and/or cash sales relatively early in the marketing year.  Short-term fundamental and technical signals are then used throughout the year to defend earlier hedges and/or cash sales.  Defense positions are usually in the form of buying calls or call spreads.  Hedging losses are possible.

·         Dynamic Hedge:  The Dynamic Hedging Model is a conservative, disciplined method of risk management for commodity hedging.  It's objective is to make pricing decisions at levels which are favorable to market averages over the long term.  It does this by taking short hedge positions on a scale up format within the upper half of an expected trading range, and liquidating these short positions at the lower half of the expected trading range.  With the use of this model the hedger knows ahead of time what action to take as prices move up or down rather than reacting emotionally to short-term market volatility.  Hedging losses are possible. 

·         Average Price Program:  This is an average price program that markets a small percentage of your crop throughout a given marketing period.  ProMark will make cash sales and hedging losses are possible.

No Futures or Options Program:

·         Cash Only:  This is by far the most conservative of the hedging programs available in that no futures or options are used.  ProMark's advisors strictly make cash sales base on long-term fundamental and technical analysis.  Since no futures or options are used there is no risk of hedging losses at the end of the marketing year.