Ethanol Changing Grain Marketing

Cindy Zimmerman

Farms TechUnited Bio Energy It has been noted that ethanol production is changing the way grain is marketed… now someone is doing something about it. It’s called the Dynamic Pricing Platform (patent pending, according to the release) and the folks who are making it happen are Farms Technology, LLC, Overland Park, KS., and United Bio Energy (UBE), Wichita, KS. According to the press release:
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.
Basically, DPP is an “on-line tool for cash grain sellers.
Ron Hansen, Vice President of United Bio Energy Management, Wichita, KS says, “UBE is committed to offering our ethanol plant partners innovative and efficient methods of conducting traditional business. After listening to our ethanol plant partners and their corn suppliers, we have chosen to offer the DPP technology to provide them with the ability to sell either by traditional means, or by this new and convenient way to sell grain. The DPP will help us service more customers in a cost-effective manner. Our suppliers can offer us their grain at the cash price they choose, and really put the power of the market to work for them online at anytime, day or night, when it’s most convenient.”
The first plant to use the system will be East Kansas Agri-Energy in Garnett, KS.