Ability to offer a Price an Unpriced Contract while Applying From Storage or From Hold (AGS-22893)

Benefits

A Spot Offer contract gives the farmer the right to a set the amount of bushels to be eligible to be priced at a premium spot price (example: 5 cents above the normal spot price). The farmer can use new grain delivered or take grain from dp/storage & use the additional spot premium of the Spot Price contract.

Allowing the pricing to happen when applying from storage or hold eliminates several steps in the process.

Description

Contract Type Setup

GRN > Setup Information > Contract Type

A priority level of 16 indicates that the contract type is a Spot Offer type. Remember to set the Hedge Position Category to “0” to prevent position updates when applying to this type of contract.

Open

Contract Creation

GRN > Contracts > Contract Maintenance

Contracts of this type are created as usual. They can be priced or unpriced. If the contract is unpriced then the price will be determined when applications happen.

Ticket Entry/Apply Tickets

GRN > Shipments > Ticket Entry/Apply Tickets

When applying tickets the user will be prompted to apply to SO contracts first, if any exist, when they select option “2) Apply To Spot Contract.” The contract may be for any location. If the user declines, then other contracts will be presented.

Open

If the user selects “Yes” then AGRIS will apply as much quantity as possible to the first schedule it can. If there is remaining quantity, then AGRIS will prompt again for what to do with that quantity. If the contract schedule is unpriced then it will be priced at this point. If the schedule has values for basis and/or futures then those values will be used. Otherwise, they will be set based on the spot default/entered value. The price will then be calculated based on the pricing formulas for SO contracts.

Automatic Applications will apply to SO contracts first.

When quantity is applied to an SO schedule, that quantity will be moved to a new schedule of Spot type with the pricing values as determined earlier. That schedule will be marked filled. Below is an example where the contract originally had four schedules with 250 bushels each and was unpriced. A ticket was entered for 350 bushels and applied to this contract. 250 bushels were taken from schedule 01 and 100 bushels were taken from schedule 02 to create schedule 05. Schedule 01 was then marked filled since there are no bushels left and schedule 02 is just reduced by the 100 bushels. The new Spot schedule is priced. Each time bushels are applied to the contract Agris will look at the last Spot schedule to see if those bushels can be added to that schedule or if a new schedule must be created.

Apply From Storage

GRN > Settlements > Apply From Storage

Apply From Storage works the same way but, since the contract is selected before the pricing data is shown, the pricing data presented is from the contract or defaulted based on the contract values.

Ticket Reversal

GRN > Shipments > Reverse Tickets

When ticket applications are reversed, the quantity applied to SO contract schedules may be moved back to the original schedule, moved to a new schedule, or the schedule may be re-classified depending on the status of the original/current schedule. The below example shows what happened when the 350 bushel ticket from the previous example is reversed. Schedules 01 and 02 had 250 bushels and 100 bushels restored to them, respectively. And schedule 05 has its quantity set to zero but retains its pricing data and is marked filled/settled.

Delivery Sheet Reversal

GRN > Settlements > Delivery Sheet Maintenance > Reverse Delivery Sheets

Delivery sheet reversal works the same way as ticket reversal.

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