CashGrainBids.com has launched a new service which allows grain traders to spot profitable opportunities for selling or buying grain in their local area. This new service, called the Cash Grain Optimizer (CGO), utilizes GIS technologies and cash grain prices from more than 2,000 elevators and buyers to pinpoint regional basis opportunities.
The service can benefit farmers who want to truck grain to premium markets, as well as grain merchandisers who want a competitive edge in their local market, said Kevin McNew, president and founder of Cash Grain Bids.
This CGO tool provides an innovative new system for producers to capture regional grain trucking opportunities. “With the CGO, farmers will know precisely which elevators within a 200-mile area are paying a high price,” McNew said. “Thanks to the service’s GIS system, farmers will know which elevators are the most profitable to truck grain to, based on driving distance and trucking costs.”
For grain merchandisers, the CGO helps them gain a competitive advantage in their local market by seeing how their basis compares to competitors. The CGO provides a regional map and table showing the net return of trucking grain from an outside elevator to a merchandiser’s home elevator. “This gives you a gauge of how competitive you are in your local area. Stated another way, if you are trying to pull more grain, the net-return calculations would let you know how far below the competition you are and how much you need to increase basis to draw more grain.” McNew said.
Cash Grain Bids Inc is a source of real time and historical data for more than 2,000 cash grain markets. In addition to being the premier archive of historical cash price data, Cash Grain Bids deploys numerous Web and software-based applications for more profitable cash-trading decisions.