Flexible Pool Options:
Seasonal Pool
Premium Call Pool
Fixed Basis Call Pool
Marketing Brochure
Seasonal/Call Combination
Option Protection Program
Management makes all marketing decisions: Pricing, CCC Loan, LDP, etc. Advance payment made when bales are delivered at harvest with quality adjustments applied using CCC Loan Schedule.
Progress payments issued in February and May with cash settlement/patronage refund in September. Premiums paid based on USDA Schedule.
Seasonal Pool advantages . . .
Member makes all pricing and LDP decisions. Price cotton and lock-in LDP through the Cooperative. Lock-in LDP Rate until Jan. 31st. Production contract.
A competitive basis is determined each year by The Cooperative as the cotton is marketed throughout the season. A maintenance margin is maintained for safety. USDA premiums and discounts only. No additional quality discounts are applied.
Member makes all pricing and LDP decisions on a bale only contract. A fixed basis (currently @ 100 Off DEC14) is offered by Cooperative subject to change based on market conditions. Basis can be rolled forward subject to minimum carrying charges. No premiums paid on quality. CCC Loan discounts apply. Additional discounts apply to mic, length and extraneous matter if partial production delivered.
Member designates the number of bales to be assigned to either the Premium Call Pool and/or Fixed Basis Call Pool option with remaining bales to be marketed in the Seasonal Pool. First bales delivered will be applied to Call Pool before any bales applied to Seasonal Pool. All other rules apply to both pools as stated above.
The Option Protection Program works in conjunction with either the Seasonal Pool or Call Pools. The member buys puts or calls to set price floors or hedge price risk. No brokerage account is necessary. The cost of options are offset against cotton payments.