PROPRICING GRAIN GUIDE A BETTER PERSPECTIVE ON GRAIN MARKETING.

Transcription

1 PROPRICING GRAIN GUIDE A BETTER PERSPECTIVE ON GRAIN MARKETING.

2 WE RE THE PROS. If you need help planning your retirement, you talk to your financial advisor. If you need legal advice, you talk to a lawyer. If you need a leg up in navigating grain marketing, you should talk to the pros at Cargill. With our global perspective, you get a competitive advantage that makes the most of your grain, in both the ups and downs of the market. In fact, we ve proven it with real results, year after year. See for yourself.

3 PROPRICING CONTRACTS MAKE DOLLARS AND SENSE. How do you make a decision about marketing your grain today when you don t know what will happen tomorrow? It is simple, make the decision to rely on ProPricing. Backed by 150 years of grain epertise in 67 different countries, we have an unmatched global perspective that s created over $300 million in value for ProPricing customers. With more than 150,000 employees worldwide constantly watching the smallest movements in the market for eample, a dock strike in Brazil, or a change in U.S. ethanol policy Cargill has the resources and perspective to capitalize on market movements. AND MORE THAN 150,000 EMPLOYEES HELP PERFECT OUR 150YEARS TRADING PERSPECTIVE

4 WHY DO YOU NEED PROPRICING? In today s market, you benefit more by using ProPricing contracts because there s less room for error when every penny can impact your bottom line. As emotions creep higher as markets dip lower, making sound selling decisions can be harder than ever. ProPricing can help by giving you a global perspective, trading your grain every day of the year, and acting quickly when demand changes. We can help you get real results, even in today s markets. At Cargill, we watch events happening around the entire world, not just the fluctuating price of grain. HOW IT WORKS. ProPricing is built to give you an advantage in the grain market, every day of the year. We make sure we give your grain every opportunity to make you successful by using our global insights and epert traders. When you commit your grain to ProPricing, Cargill employs simple futures and comple options to determine a price for your grain whenever the market presents trading options whenever the market presents trading opportunities. In just the last year, Cargill merchants made nearly 10,000 individual trades marketing the grain across the various ProPricing contracts. We make the most of your grain, and grain prices, every day.

5 WE RE WITH YOU FOR THE LONG HAUL. Consistency pays with ProPricing and we have the results to prove it. Much like a retirement plan, the more years that you enroll the same amount of bushels in ProPricing, the more opportunity those bushels have to take advantage of both the ups and downs of the market. We are committed to guiding you through it, every step of the way. 450 OCEAN-GOING VESSELS DEDICATED TO YOUR GRAIN

6 CONSISTENCY PAYS. We get it, it s not easy to trust someone else with your grain. It s even harder not to change the amount of bushels in your ProPricing contracts year over year. After 15 years of building the world s largest farmer grain contract, our goal is still to make your business as successful as it can be. Even when markets are down, our track record has proven that ProPricing customers who consistently contribute the same percentage of production every year greatly benefit over the long run versus those who don t. CONSISTENT PROPRICING USER Locks in same percentage of production annually 80,000 75,000 70,000 65,000 60,000 55,000 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Bushels Customer Value $82, TOTAL VALUE INCREASING PERCENTAGE PROPRICING USER Increases percentage of production annually 60,000 55,000 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 INCONSISTENT PROPRICING USER Reacts with volatility annually 60,000 55,000 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Bushels Bushels Customer Value TOTAL VALUE Customer Value $38,400 $7, TOTAL VALUE

7 PROPRICING 2016 CONTRACT TABLE 2015 ENROLLMENT FUTURES REFERENCE MONTHS OFFERED SIGN-UP PERIOD PRICING PERIOD CORN InventoryPro (2015 Crop) 1-Year (2016 Crop) 2-Year (2017 Crop) InventoryPro (2015 Crop) 1-Year (2016 Crop) 2-Year (2017 Crop) Mar /13/15-09/04/15 09/09/15-02/19/16 July 2016 (Sep start) 07/13/15-09/04/15 09/09/15-06/03/16 July 2016 (Dec start) 07/13/15-12/18/15 12/23/15-06/03/16 Sep /13/15-12/18/15 12/23/15-08/05/16 Dec 2016 (Sep start) 07/13/15-09/04/15 09/09/15-11/04/16 Dec 2016 (Dec start) 07/13/15-12/18/15 12/23/15-11/04/16 Mar /13/15-12/18/15 12/23/15-02/03/17 May /13/15-12/18/15 12/23/15-04/07/17 July /13/15-12/18/15 12/23/15-06/09/17 Sep /13/15-12/18/15 12/23/15-08/04/17 Dec /13/15-12/18/15 12/23/15-11/03/17 Mar /13/15-12/18/15 12/23/15-02/09/18 SOYBEANS Mar /13/15-09/04/15 09/09/15-02/19/16 July 2016 (Sep start) 07/13/15-09/04/15 09/09/15-06/03/16 July 2016 (Dec start) 07/13/15-12/18/15 12/23/15-06/03/16 Nov 2016 (Sep start) 07/13/15-09/04/15 09/09/15-10/07/16 Nov 2016 (Dec start) 07/13/15-12/18/15 12/23/15-10/07/16 Jan /13/15-12/18/15 12/23/15-12/09/16 July /13/15-12/18/15 12/23/15-06/09/17 Nov /13/15-12/18/15 12/23/15-10/06/17 Jan /13/15-12/18/15 12/23/15-12/08/17 HARD RED WINTER WHEAT (HRW) InventoryPro (2015) Mar /13/15-09/04/15 09/09/15-02/05/16 1-Year (2016) July /13/15-09/04/15 09/09/15-06/03/16 2-Year (2017) July /13/15-09/04/15 09/09/15-06/09/17 SOFT RED WINTER WHEAT (SRW) InventoryPro (2015) Mar /13/15-09/04/15 09/09/15-02/05/16 1-Year (2016) July /13/15-09/04/15 09/09/15-06/03/16 2-Year (2017) July /13/15-09/04/15 09/09/15-06/09/17 FOCUS ON THE THINGS YOU CARE ABOUT MOST. ProPricing not only adds value to your forward contract through global resources, epert analysis and local professionals, it also gives you peace of mind. When you sign up for ProPricing, you turn over a huge burden to the pros at Cargill, so that you can focus on farming.

8 10,644 PROPRICING GRAIN TRADES MADE LAST YEAR ALONE

9 A What percent of your crop is typically forward-contracted prior to harvest? 70 85% 50 69% 30 49% 10 29% 0 9% SCORE: Strongly Disagree Strongly Agree B I understand all of the factors that are influencing the price of grain at any given time. I believe I have all the information I need to make effective grain marketing decisions. Making the decision on eactly when to sell my grain is easy for me. After I sell grain, I rarely regret the decision(s) I ve made. When I sell grain, I like to sell a lot at one time. Diversification is for people who can t make a decision. I sometimes feel like I lose control when I commit bushels to averaging or other deferredpricing contracts. It would be very uncomfortable to trust a grain buyer, like Cargill, to help sell a portion of my crop. Overall, I feel I do an ecellent job of marketing my crop GET AN ADVANTAGE WITH PROFACTOR. To reap the full benefits of ProPricing contracts, you need to know the right amount of bushels to enroll each year. Knowing the right percentage of bushels, or what we call the ProFactor, helps give you the right balance of risk management across your complete portfolio of grain contracts. Your ProFactor is based on your personal risk assessment and marketing style. 120 Total Score TOTAL SCORE Total of A + B ProFactor ProPricing ProFactor

10 DEDICATED CARGILL METEOROLOGISTS PROVIDE REAL-TIME MARKET INSIGHTS DURING WEATHER MARKETS

11 SIGN UP TODAY. Get every opportunity to succeed in today s grain market. The sooner you sign up for ProPricing, the sooner you can reduce the stress of marketing grain. Fill out the enrollment forms on the following pages, and deliver to your Cargill sales representative at your earliest convenience. 145 DELIVERING YOUR GRAIN TO 145 COUNTRIES THAT NEED IT

12 CORN ENROLLMENT WORKSHEET Shaded Areas = office use only Date: Salesperson: Account Number: Region: Customer: Entered in EtraCense: Lyn: Delivery Location: 2015 Crop InventoryPro 2015 Corn Acres Epected Yield Estimated 2015 Production = Bushels Sold Remaining Bushels to Sell = 2015 Mar /09/15 02/19/16 July 2016 Early 09/09/15 06/03/ Crop Epected 2016 Acres Trendline Yield (Bu/Acre) Estimated 2016 Production = ProPricing ProFactor 2016 ProPricing Bushels = 2014 Sign-up Bushels July 2016 Late 12/23/15 06/03/16 DELIVERY PERIOD Jan Feb Mar Jun Jul Jun Jul Non Select SIGN UP NOW FOR EARLY TRADING SIGN UP NOW FOR EARLY TRADING 2017 Crop Epected 2017 Acres Trendline Yield (Bu/Acre) Estimated 2017 Production = ProPricing ProFactor 2017 ProPricing Bushels = Share to Enroll This Year 2016 Sep /23/15 08/05/16 Dec 2016 Early 09/09/15 11/04/16 Dec 2016 Late 12/23/15 11/04/16 Mar /23/15 02/03/17 May /23/15 04/07/17 Jul /23/15 06/09/17 DELIVERY PERIOD Aug Sep Oct Nov Dec Oct Nov Dec Jan Feb Mar Apr May Jun Jul SIGN UP NOW FOR EARLY TRADING Non Select 2017 Sep /23/15 08/04/17 Dec /23/15 11/03/17 Mar /23/15 02/09/18 DELIVERY PERIOD Aug Sep Oct Nov Dec Jan Feb Mar Non Select Customer Signature Do you want to stay informed about the performance of your ProPricing contract? Address Tet Message

13 SOYBEAN ENROLLMENT WORKSHEET Shaded Areas = office use only Date: Salesperson: Account Number: Region: Customer: Entered in EtraCense: Lyn: Delivery Location: 2015 Mar /09/15 02/19/16 Jul 2016 Early 09/09/15 06/03/16 Jul 2016 Late 12/23/15 06/03/16 DELIVERY PERIOD Jan Feb Mar Jun Jul Jun Jul Non Select 2015 Crop InventoryPro 2015 Soybean Acres Epected Yield Estimated 2015 Production = Bushels Sold Remaining Bushels to Sell = SIGN UP NOW FOR EARLY TRADING 2016 Crop Epected 2016 Acres Trendline Yield (Bu/Acre) Estimated 2016 Production = ProPricing ProFactor 2016 ProPricing Bushels = 2014 Sign-up Bushels SIGN UP NOW FOR EARLY TRADING 2017 Crop Epected 2017 Acres Trendline Yield (Bu/Acre) Estimated 2017 Production = ProPricing ProFactor 2017 ProPricing Bushels = Share to Enroll This Year 2016 Nov 2016 Early 09/09/15 10/07/16 Nov 2016 Late 12/23/15 10/07/16 Jan /23/15 12/09/16 Jul /23/15 06/09/17 DELIVERY PERIOD Sep Oct Nov Sep Oct Nov Dec Jan Jun Jul Non Select SIGN UP NOW FOR EARLY TRADING 2017 Nov /23/15 10/06/17 Jan /23/15 12/08/17 DELIVERY PERIOD Sep Oct Nov Dec Jan Non Select Customer Signature Do you want to stay informed about the performance of your ProPricing contract? Address Tet Message

14 WHEAT ENROLLMENT WORKSHEET Shaded Areas = office use only Date: Salesperson: Account Number: Region: Customer: Entered in EtraCense: Lyn: Delivery Location: 2015 Crop InventoryPro 2015 Wheat Acres Epected Yield Estimated 2015 Production = Bushels Sold Remaining Bushels to Sell = 2016 Crop Epected 2016 Acres Trendline Yield (Bu/Acre) Estimated 2016 Production = ProPricing ProFactor 2016 ProPricing Bushels = 2017 Crop Epected 2017 Acres Trendline Yield (Bu/Acre) Estimated 2017 Production = ProPricing ProFactor 2017 ProPricing Bushels = 2015 Mar /09/15 02/05/ Sign-up Bushels DELIVERY PERIOD Jan Feb Mar Non Select Share to Enroll This Year 2016 Jul /09/15 06/03/16 DELIVERY PERIOD Jun Jun-Jul Jul Non Select 2017 Jul /09/15 06/09/17 DELIVERY PERIOD Jun Jun-Jul Jul Non Select SRW Chicago Wheat Customer Signature HRW Kansas City Wheat Do you want to stay informed about the performance of your ProPricing contract? Address Tet Message

15

16 CARGILLAG.CA The Cargill logo and PROPRICING are registered trade-marks of Cargill, Incorporated, used under licence. 2015, Cargill Limited. All Rights Reserved. Purchase Contract terms apply. This is provided to you for information purposes only, does not constitute an offer, and is not intended to be a part of any contract that may be entered into. Please consult the Purchase Contract for the terms and conditions that will govern the sale and purchase of grain. Information provided is general in nature and is provided without guarantee as to results. The information is not intended to be, and should not be construed as, trading, financial, legal, or ta advice. No warranty is made with regard to the information or results obtained by its use. Cargill, Incorporated, its subsidiaries, and affiliates disclaim any liability arising out of your use of, or reliance on, the information. AGH 1379