Western Wisconsin Energy Launches Online Cash Pricing Platform

Dynamic Pricing Platform gives growers in western Wisconsin, northeastern Iowa and southeastern Minnesota ability to create, manage and monitor target priced cash grain offers. Compiled by staff

Published on: Jun 19, 2006

Farms Technology, LLC, Overland Park, Kan., and Western Wisconsin Energy, LLC, Boyceville, Wis., announce the availability of the Dynamic Pricing Platform, online grain procurement application to western Wisconsin, northeastern Iowa and southeastern Minnesota corn producers. UBE Services, LLC, a US BioEnergy company, procures grain for Western Wisconsin Energy and recommends ethanol plants utilize the DPP to provide additional grain buying capability and service to grain producers.

The DPP gives producers the ability to create, manage and monitor target priced cash grain offers that are evaluated in real-time with every tick of the futures market. Growers no longer need to be by a phone to call their local buyer at the right time on the right day to get the best prices.

In addition to target offers, a variety of online marketing tools are available around-the-clock. These include: average pricing contracts, futures fixed contracts, basis contracts along with historical cash pricing data, cash bid sheets and local buyer commentaries.

Farms Technology, LLC, CEO Jason Tatge, explains farmers and buyers have traditionally spoken two different languages. "The farmer is primarily concerned with the price on the check from the local buyer after the grain is delivered (cash price). The buyer is concerned with buying a certain basis level and being able to get that grain hedged. The DPP allows both parties to speak in their own terms, while using the futures market volatility to dynamically create a match. Buyers are able to get their basis levels bought and farmers get their asking prices because the DPP can monitor every offer with every fluctuation of futures prices," Tatge says.

One cent per bushel is the cost for use of the DPP online cash grain trading platform, Tatge adds.

Joel West, grain procurement manager for Western Wisconsin Energy and a UBE Services' employee says, "As the ethanol industry continues to expand, grain origination will continue to become a more competitive landscape. The more convenient and valuable marketing services we can offer to the producer the more we can differentiate ourselves from the competition. We feel DPP is one tool that will help us meet this goal."

Producers and other suppliers can learn more about online cash grain sales opportunities using the DPP service at www.farmstech.com, or by directly contacting Western Wisconsin Energy grain buyer Joel West at (866) 763-1749.