FAQ

A commercial elevator (which is a business that stores and handles grain and other commodities) might use Bloomington, IL's Advance Trading Incorporated's commodity brokerage services for several reasons:

1. Expert Market Insight and Advice: Advance Trading offers specialized knowledge and expertise in commodity markets, including grains, livestock, and other agricultural products. They provide valuable insights into market trends, pricing, and timing, helping elevators make more informed decisions regarding when to buy, sell, or store commodities.
2. Risk Management Solutions: One of the key reasons a commercial elevator might use a commodity broker is to manage risk. Agricultural markets can be volatile, and using tools like futures contracts, options, or hedging strategies can help elevators protect themselves against price fluctuations that might affect their profitability. Advance Trading offers a variety of risk management products that can be tailored to the needs of an elevator, providing price protection for both buying and selling commodities.
3. Access to Advanced Trading Platforms: Advance Trading provides access to professional-grade trading platforms and technology that allow elevators to execute trades efficiently. This includes real-time data, charting, and risk analysis tools, which can be essential for making timely and informed decisions.
4. Customized Solutions: Elevators often have specific needs related to managing large volumes of grain and other commodities. A brokerage like Advance Trading can work closely with their clients to develop customized risk management and trading strategies that align with their business goals and operational needs.
5. Market Liquidity and Execution: By working with a reputable brokerage like Advance Trading, elevators can gain access to the liquidity of larger markets, making it easier to execute large trades without significantly affecting market prices. This is particularly important for elevators dealing with large volumes of grain or other commodities.
6. Educational Support: Many brokers, including Advance Trading, offer educational resources, such as market analysis, webinars, and training, that can help their clients understand the complexities of the commodity markets. This knowledge can empower an elevator to make better trading decisions and improve their overall risk management strategy

Overall, by partnering with a commodity brokerage like Advance Trading  Inc., a commercial elevator can enhance its ability to manage risk, improve decision-making, and ultimately increase profitability in the competitive agricultural market.

ATI offers a comprehensive suite of services designed to meet the unique needs of grain elevators. These include:

• Grain marketing expertise to optimize pricing strategies.
• Risk management plans to protect your margins in volatile markets.
• Futures and options execution for precise, cost-efficient trades.
• Customized market insights that help you stay ahead of trends.

Our goal is to simplify the complexities of grain merchandising while maximizing your elevator's profitability.

ATI partners work with you to develop a merchandising strategy tailored to your goals. We provide:

• Real-time market data and price analysis to guide decisions.
• Expert advice on basis trading and spread management to maximize returns.
• Strategies that align cash grain purchases with effective hedging tactics.

By identifying and acting on market opportunities, we help you strengthen your position in the marketplace.

Yes!  ATI provides proprietary market analysis tools and reports, including:

• Historical and real-time data on basis trends and futures spreads.
• Market commentary from our team of seasoned experts.
• Alerts and updates to keep you informed of critical market moves.

These tools empower you to make informed decisions based on actionable insights.

Yes, ATI offers in-depth training tailored to your team’s needs. Our training includes:

• Workshops on futures, options, and risk management.
• On-site or virtual sessions for flexibility.
• Practical strategies your staff can immediately implement in day-to-day operations.

Our goal is to enhance your team’s skills and ensure they are equipped to excel in a competitive environment.

ATI offers strategies to manage margins effectively through disciplined hedging practices and cost-efficient execution of futures and options trades, ensuring your elevator remains competitive and profitable.

ATI ensures your margins are protected through:

• Precision hedging strategies that mitigate price risk.
• Custom plans tailored to your inventory and financial goals.
• Regular performance reviews to adjust strategies as needed.

With ATI, you’ll maintain competitive margins while reducing exposure to market volatility.

Yes! ATI provides small and mid-sized elevators with the same market insights and tools used by major players. Our support allows you to:

• Offer competitive bids to farmers.
• Secure profitable positions in the market.
• Build stronger relationships with growers and end-users.

We level the playing field, giving you the edge you need to thrive.

Absolutely. ATI’s risk management services are tailored to:

• Protect your inventory value against market swings.
• Align futures and options positions with cash flow needs.
• Mitigate the risks of holding physical grain in volatile conditions.

Our advisors work closely with you to develop a plan that ensures your inventory remains an asset, not a liability.

Advance Trading provides access to professional-grade trading platforms and technology that allow elevators to execute trades efficiently. This includes real-time data, charting, and risk analysis tools, which can be essential for making timely and informed decisions.

By working with a reputable brokerage like Advance Trading, elevators can gain access to the liquidity of larger markets, making it easier to execute large trades without significantly affecting market prices. This is particularly important for elevators dealing with large volumes of grain or other commodities.

Managing basis risk is a cornerstone of ATI’s expertise. Our advisors work with you to:

• Identify the best opportunities to lock in favorable basis levels.
• Use hedging strategies that balance cash and futures positions.
• Leverage spreads to optimize carry costs and maximize margins.

We help you navigate the intricacies of basis trading with confidence.

ATI combines over 40 years of experience with cutting-edge market tools. What makes us unique?

• A personalized approach—each elevator receives customized solutions.
• A focus on education—empowering your team to make informed decisions.
• A client-first mindset—your success is our priority.

We’re more than a service provider—we’re a strategic partner dedicated to your growth.

• Contact us directly by phone at 1.309.664.2300 or through our online form to speak with one of our advisors.
• We’ll schedule an initial consultation to assess your needs and develop a customized strategy.

Partner with ATI and take your grain merchandising to the next level.

A marketing plan is a strategic approach to selling your crops, and it involves making many important decisions. When should you sell? Where should you sell? How should you sell, and at what price? A marketing plan helps you manage the uncertainty of market prices, as well as external factors like weather conditions, financial market volatility, and even global events that may impact your farm's profitability.

Having a marketing plan is essential for optimizing revenue by reducing financial risks. The Risk Advisor Team at Advance Trading is here to help you create your plan—whether it's your first time or you're seeking an objective review of your current approach. 

Reducing risk is primarily about mitigating price fluctuations: Financial instruments such as futures, puts, and calls can help lock in prices in advance.  Losses incurred by falling cash market prices can be offset by gains made from the futures and options on futures.   Conversely, if cash market prices rise beyond expectations the futures and options on futures will decrease in value but will have provided peace of mind for market uncertainty.

Some  of the basic building blocks of commodity trading – tools of the trade include:
 

• Futures Contracts: These contracts can help you lock in a selling price for your crops before harvest, which protects you from the risk of falling prices.
• Put Options: This option allows you to set a minimum price you will receive for your crops. If prices fall below this threshold, you can exercise the put to sell at the agreed price, limiting your loss.
• Call Options: A call option can be used if you want to benefit from rising prices while having some level of protection.

These are just the basics, but placed in the hands of a trusted risk advisor they can be quite effective for establishing or advancing your marketing plan.

Regardless of a farm’s size, location, or crop specialty, it doesn’t take long for producers to be able to relate to one another as they share facts and opinions about subject areas such as:

• Price Volatility  - Farmers are often dealing with unpredictable commodity prices due to weather, market conditions, and global trends.  
   
• Input Cost Pressure - Farmers already deal with rising costs for inputs like seeds, fertilizers, and labor, so any fluctuation in crop prices can significantly affect their bottom line.
   
• Cash Flow Management - Managing cash flow from season to season is crucial, and many farmers experience stress due to price swings between planting and harvest.

If you can relate and want to stay up-to-date on current issues and facts, Advance Trading has your covered with a host of media options featuring daily-breaking news podcasts, weekly crop report videos, news and publications, and more.   Be sure to look for us on YouTube, X, and AcresTV as well as Spotify & Apple Music.

Sell cash crop and Buy a Put: In an upmarket, selling the grain at favorable prices while simultaneously purchasing a put option can help lock in profits while providing downside protection. Selling the grain locks in the current higher prices, and buying a put option establishes a price floor, providing insurance in case of a market pullback. This strategy is useful when you believe that prices may continue to rise but want to guard against a sudden market correction. The put option ensures that if prices do fall, you still have a minimum guaranteed selling price.

Forward Contracts/Fixed Price Sales: Another strategy is entering into forward contracts or making fixed price sales. In an up market, these contracts allow producers to secure current high prices for future delivery, offering certainty and reducing exposure to future price declines. By locking in a price now, producers can take advantage of strong market conditions and ensure their revenue without waiting for potential fluctuations. This strategy is most effective when you are confident that current price levels are favorable, and you want to ensure profitability without worrying about volatility.

Sell a Portion and Hedge the Remainder (Options or Futures): If you're not ready to sell all your grain but want to lock in part of the profits from the up market, selling a portion and using futures or options for the remainder of the crop is a good strategy. By selling part of the grain at current prices, you secure cash flow and mitigate risk, while using futures or options (such as buying a call) on the remaining grain gives you exposure to further upside potential if the market continues to rise.

Do Nothing—Hold for Further Upside: If you believe that the market will continue to rise and you're comfortable with the volatility, simply holding the grain for the time being can be a viable strategy. This approach is best for producers who have a long-term perspective or who can afford to weather short-term fluctuations. By holding onto the grain, you can potentially benefit from additional price increases in the future. However, this strategy comes with risks, especially if there’s uncertainty about how long the upmarket will last or if there are signs of a correction.

Diversify Sales (Scale Selling): In an upmarket, a gradual sales strategy can be a good way to maximize profits while managing risk. By selling your grain incrementally over time—also known as "scaling into the market"—you can take advantage of rising prices while mitigating the risk of missing out on higher prices later. This approach allows producers to capture different price points across the market cycle, reducing the impact of any sudden downturn.

These strategies are designed to help producers manage risk while maximizing the benefits of a strong, upward-trending market. Each strategy can be adapted based on a producer’s risk tolerance, market outlook, and financial goals.

Market Volatility: Just as in a down market, upmarkets can be highly volatile. While rising prices present opportunities, they can also be unpredictable, and the market could shift unexpectedly. These strategies matter because they allow you to lock in profits while also managing the risks associated with a potential downturn. The market could peak or plateau, so taking a proactive approach (like selling and buying options, forward contracts, or hedging) helps ensure you don’t miss the opportunity to capitalize on high prices while mitigating downside risk.

Risk Management: Even in an upmarket, there is still risk involved, especially if prices suddenly reverse or correct after reaching a high point. These strategies provide a way to manage that risk. For example, using a forward contract or put option locks in a price, ensuring you don't lose out if prices fall after they’ve made a sale. Managing upside risk, rather than simply hoping for continued gains, ensures you are protected against the inherent uncertainty of price movements in volatile markets.

Cash Flow and Liquidity: When grain prices rise, you may be in a better position to sell at favorable rates, improving cash flow. However, holding onto grain in the hopes of higher prices might tie up liquidity. Strategies like selling part of the crop, entering into forward contracts, or hedging with options help manage cash flow while allowing for some exposure to further price increases. These strategies balance immediate liquidity with the potential for future profit, which is crucial for running operations smoothly and securing financial stability.

In Summary.  These strategies help you lock in profits, manage market volatility, and ensure you have the flexibility to adjust to future price movements—key elements of a solid risk management plan in an upmarket environment. Be sure to reach out to a Trusted Risk Advisor from Advance Trading and to help you make an informed decision on which strategy to consider based on Advance Trading's experience of over 45 years in the grain marketing business. 

Sell Cash Crop: In a down market, selling the grain as soon as possible is a straightforward strategy. Prices are low but locking in a sale can help secure cash flow and avoid further price declines. This is especially effective if you believe prices will continue to fall or that the market has already reached its lowest point for the time being. It provides certainty, which is valuable when there is fear of further losses.

The advantage of this strategy is it allows you to get cash in hand quickly, minimizing the risk of holding onto the grain for a potentially lower price later. It may also help manage storage costs and the risk of grain spoilage or deterioration.

Sell Cash Crop and Buy a Call: This strategy involves selling the grain and simultaneously purchasing a call option on the commodity. A call option gives you the right (but not the obligation) to buy the commodity at a specified price (strike price) before the option expires. By using this strategy, you lock in a selling price (through the sale of the grain) but also have the potential to benefit from any upside price movement.

This strategy is advantageous when you want to secure a floor price (via selling) but still have an upside opportunity if the market rebounds. It provides protection against further price declines while keeping the door open for you for potential profit if the market improves.

Don’t Sell Cash Crop—Buy a Put to Set a Floor.  In this strategy,  you chose not to sell immediately but instead buy a put option. A put option gives you the right to sell the commodity at a set price (strike price), thus establishing a price floor. This allows you to participate in any potential upside if the market improves, while still having the safety net of the put option if prices fall further.  Buying a put option helps manage downside risk. If prices fall below the strike price of the put, you can sell the grain at the put’s strike price, minimizing losses. This strategy is useful if you believe prices might fall further but do not want to miss out on a potential price recovery.

Do Nothing.  This strategy is the easiest to employ and simply involves holding the grain and not taking any action. It might seem passive, but it can be an effective approach if you,the producer ,believe prices will stabilize or rebound in the near future. By doing nothing,  you avoid transaction costs and stay positioned for a possible price recovery.  “Doing nothing" can be appropriate if you believe the market is temporarily depressed but have good reason to expect prices will rise again soon. This strategy is a bet on future price recovery, and it can be the best choice for producers with a longer-term perspective or who can afford to wait.

Market Volatility - Grain prices can fluctuate due to global supply-demand factors, weather conditions, and trade policies. Downmarkets can create a sense of urgency, but these strategies offer ways for you to manage risk and take advantage of potential future opportunities.

 Risk Management - These strategies allow you to manage price risk and volatility. Whether it's through locking in a minimum price (selling cash and buying a call or buying a put) or by staying out of the market temporarily, you have tools available to you to avoid selling at a loss while still being able to capitalize on potential gains if the market recovers.

Cash Flow and Liquidity - In tough markets, you need to maintain cash flow for operational expenses. Selling cash crop immediately or buying options can help you secure finances or hedge against further price declines, providing necessary liquidity in a difficult market environment.

ATI ensures your margins are protected through:

• Precision hedging strategies that mitigate price risk.
• Custom plans tailored to your inventory and financial goals.
• Regular performance reviews to adjust strategies as needed.

With ATI, you’ll maintain competitive margins while reducing exposure to market volatility.

Managing basis risk is a cornerstone of ATI’s expertise. Our advisors work with you to:

• Identify the best opportunities to lock in favorable basis levels.
• Use hedging strategies that balance cash and futures positions.
• Leverage spreads to optimize carry costs and maximize margins.

We help you navigate the intricacies of basis trading with confidence.

ATI’s decades of experience, personalized approach, and deep-rooted expertise in grain marketing make us a trusted partner. We combine industry knowledge with innovative tools to create a customized plan for each client.

Getting started is simple! Call us directly at 1.309.664.2300. We’ll assess your needs and develop a personalized strategy for your grain elevator.

As of March 21, 2025, Commodity & Ingredient Hedging (CIH) has acquired Advance Trading, Inc. (ATI). Both companies are widely renowned and respected leaders of risk management in agricultural industries. While continuing to operate as independent companies, combining their strengths in execution, technology, and education will create an unparalleled service environment for clients.

In addition to the high standard of service you’ve come to expect from us, we will also be able to combine CIH’s superior technology & platform with Advance Trading’s expertise to further strengthen the value of our risk management services to farmers like you. As our client, you will gain access to a broader range of market intelligence, risk management tools, and personalized strategies.

You are our priority as a client, and we will continue to improve and push the envelope to offer you the best personalized risk management services offered in the grain industry.

Yes. Both companies will be operating under their current brand names with the same mission to provide clients with the best risk management strategies. Now, it’s elevated across the grain industry.

Our new team will have the capability to serve over 4,000 accounts across the U.S., Canada, Latin America, Europe, and Asia!

By combining CIH’s platform with Advance Trading, we will comprehensively work with the agricultural market. Our partnership strengthens our personalized risk management offerings for commercial grain operations, grain producers, and other agricultural businesses.

Commodity & Ingredient Hedging has been servicing the agriculture industry in Chicago, IL since 1999. CIH is a leader in risk management solutions for multiple agricultural industries. Their focus on risk management education, proprietary technology, and an objective approach supports producers, food companies, importers/exporters, and traders globally.

We encourage you to read our Press Release, and as always, our clients are our main focus. If you have any questions or concerns, do not hesitate to contact us at our Advance Trading office at (309) 664-2300.

More resources:

• CIH: www.cihedging.com

• Advance Trading, Inc.: www.advance-trading.com

• Falfurrias Capital Partners: www.falfurrias.com