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Acronyms
Barge Freight
Market Solutions
Customer Relations
100

FOB?

What is Free On Board?

(FOB is what the value of your grain is worth above or below the futures price at a specified location.  FOB contracts take away the responsibility of the seller to find transportation for goods and commodities making the buyer responsible for delivery. FOB contracts relieve the seller of responsibility once the goods are shipped.)

100

What is the barge freight rate at Jeffersonville, IN - mile marker 597 OHR?

What is $4.46/ton?

100

What is a put and a call option?

  • Put (expect the price to fall) = the right to sell a futures contract, but not the obligation
  • Call (expect the price to rise) = the right to buy a futures contract, but not the obligation 
100

What is a feature and its benefit?

Feature: the characteristic if a product or a program

Benefit: The value of a feature

200

GTC?

What is GTC - Good Til Cancel?

200

Calculate the barge freight cents per bushel for corn at Jeffersonville with barge freight at 300%? 

What is about 37 cents per bushel?

$4.46/ton x 300% x ton/2000lbs x 56lbs/bu of corn = $0.37/bu

200

What are the four MS products offered by CGB?

  • Equalizer Min Max (EMM, EMM+, & EMM flex)
  • Market Premium Plus (MPP)
  • Managed Pricing (MP)
  • Seasonal Products (RPP, etc.)
200

What are the two types of questions asked and how do they affect conversation flow?

Closed - questions that can be answered with a "yes" or "no" (keep conversation short)

Open - questions phrased to encourage a wide range of answers (keep conversation flowing)


300

MOO?

What is MOO - Market On Open?

300

What does the term "paper" equate to in barge freight?

What is freight that has to be delivered between Sunday at 0001hrs through Saturday at midnight?

300

What does an EMM do?

  • Establishes a floor and a ceiling
  • Averages futures over the pricing window, never pricing below the floor or above the ceiling
  • Allows any bushel amount (Plus requires 5,000bu increments)
300

What does SMART stand for as far as call objectives go?

Specific/measurable

Motivating

Attainable

Relevant

Trackable

400

DLQ?

What is DLQ - Distinctively Low Quality?

400

What is the standard barge demurrage schedule?

What is the first three days on placement are free, next 10 days are $400/day and everyday thereafter is $600/day.

400

What does an MPP do?

  • Receive a premium to the current market price
  • Zero cost
  • Potential double bushel commitment at Daily Hedge Price (DHP)
  • Any bushel increments
  • First set of bushels guaranteed to price
  • Allotted amount of bushels priced out every day at daily hedge price (5,000 bu - 155 days of pricing = ~32 bu priced/day)
  • First set of bushels guaranteed to price out
  • Cannot remove the PLUS obligation
  • At the price out level, the program stops pricing remaining at and will price out remaining at the  floor
400

How do we handle objections?

DUVH: 

-Determine the real issue

-Understand the issue from the other person's point of view

-Verify that your understanding is correct if other obstacles exist

-Handle the real issues

500

CP?

What is CP - Constructive Placement?

500

Sometimes it can be cheaper to buy today and hold the barge and pay for demurrage for loading at a later time. Calculate the cost to carry barge freight? Freight is trading at 200% for placement August 1st and CGB would like to hold the barge until September 15th anticipating to load 1800 tons. Utilize Jeff freight rate of $4.46/ton.

What is 289%? 

There are 45 days of demurrage, 3 days free, 10 days at $400/day, and $600/day for 32 days after, totaling $23,200. 

$23,200 (total demurrage)/1800 tons (estimated tons)/ $4.46/ton (rate base) = 289% carry 

Freight has to be at least 489% in September for the carry to make sense.

500

What is the cost/price of an option called? What influences that cost/price?

  • Premium - indicates the cost, or price, of an option.
  • Influences - time to expiration, volatility of underlying market, strike price's proximity to underlying futures
  • If these influences are higher = more premium
500

What is SIERRA? 

1. Summarize the situation - establish a need, highlight an opportunity, focus on a issue that can be fixed

2. Idea statement - State the answer or solution to the problem in step #1

3. Explain how it works - Describe the details of the implementation (who, what, where, when, and how)

4. Review the benefits - Briefly recap how your plan will benefit the customer's question

5. Ask for the opportunity - Suggest an easy step that will close the sale