FCStone Trading is an industry leader in executing and developing OTC structured pricing products for our commercial customers. Over the last few years, the grain industry has seen an increased demand for innovative, hybrid pricing contracts.  Elevators have turned to FCStone to help design and implement  products that offer their producer customers a pricing advantage as well as giving the elevator grain origination.  FCStone has answered that call with the development of a menu of OTC hedged pricing tools.  This menu of structured products has been primarily utilized by our country grain elevator clients.  However, the uses of these structures have been proven to be successful not only for the handlers of agricultural commodities but also for the consumer/user of the grain commodities as well. 

We began to build a menu of new physical contracts hedged by OTC products in 2001.  For example, we have assisted our elevator clients in hedging producer contracts which allow their producer customers to price the sale of their grain at the "higher of" two separate and distinct averaging prices.  Our elevator clients have also been able to hedge producer contracts which allow the producers to have equal quantities of bushels priced every week above the market for no up front cost as long as certain market conditions are met.  Contact us for more information.