COMARK, a farmers marketing cooperative based in Memphis, Tenn., has announced the launching of two new cotton pools, three new grain marketing pools, and a special allocation to some of its members participating in its Opt-In Soybean Pool for the 2004 crop marketing year.
“These programs will give our members a competitive advantage over others,” says Charlie Lowrance, president of CoMark. “Our ability to offer minimum guarantees, with the ability to increase pool value should prices rise, is like nothing else on the market.”
The new cotton pools include:
Price Achiever: This minimum guarantee program allows producers to target a profitable futures price at which to sell their cotton, says Lowrance. Should the market achieve that target, CoMark can guarantee the producer a minimum price, yet also allow for additional price increases should the market move higher.
Equity Pool: In the Equity Pool, cotton is placed in the loan through CoMark's USDA Authorized Cooperative Marketing Association (CMA) status. Equities are then sold utilizing CoMark's volume selling power to domestic or export markets. All loan premiums are passed through to the producer. CoMark is organized independently of all merchants, Lowrance noted.
The new grain pools are:
Price Achiever: This minimum guarantee program allows producers to target a profitable futures price at which to sell their grain. Should the market achieve that target, CoMark can guarantee the producer a minimum price and also allow the producer to participate in a rising market should that occur as well.
Price Protector: “This pricing system allows the producer to lock in a price — based upon an actual pricing grid — yet capitalize on any market upswings should they occur,” says Lowrance. “The price protector is designed to minimize the fear of being wrong.”
Minimum Average: CoMark's new plan allows the producer to receive the average price for a specified period yet also participate in a rally should it occur after the pricing period is over.
All pools are effective tools for grain enrolled in various crop insurance programs.
The special allocation for its soybean program will be available to some of its members participating in its Opt-In Soybean Pool, says Lowrance.
“Due to soybean market performance and our position in the market, this allocation will be issued,” he noted. “The foresight of our advisers has created excellent profits for some of our members.”
Lowrance said the allocation represents profits already achieved since harvest deliveries. Members receiving this allocation will continue to participate in the Opt-In program. The Opt-In soybean pool is available to CoMark members who have sold cash soybeans through CoMark and chose to remain in the program.
“Some members could make tremendous returns, it all depends on the levels achieved by the soybean market,” adds Lowrance.
CoMark, a farmer-founded, farmer-owned cooperative, markets corn, cotton, soybeans, wheat and milo on behalf of farmers throughout the continental United States.