Des Moines, Iowa
November 13, 2008
MarketPoint® Resource e-PitSM
is industry first and only available on Pioneer MarketPoint®
Resource
DuPont business
Pioneer Hi-Bred and
Farms Technology, LLC
today announced a new proprietary service technology available
through the MarketPoint® resource Web site that will simplify
and speed up grain commodities hedging for buyers by providing
concurrent electronic hedge orders and cash commodity
transactions.
"The e-PitSM technology has the potential to save grain buyers
time and money in their grain buying process," said Joe
Foresman, Pioneer senior marketing manager. "For growers, the
ease and cost-efficiency of the service will increase the number
of potential grain buyers on MarketPoint resource looking to buy
their grain."
The patented e-Pit technology on MarketPoint resource will
facilitate instant electronic hedging by buyers who purchase
grain. The MarketPoint resource currently has over 120 buyer
locations and more than 7,100 growers from Nebraska and Iowa
registered with the resource program. Pioneer and Farms
Technology are the first in the industry to provide this service
and the MarketPoint resource will be the only marketing site
with multiple buyers using e-Pit technology.
"The e-Pit technology on the MarketPoint resource is a win-win;
it is designed to allow growers to obtain their asking prices
and buyers to obtain their futures hedges with limited
slippage," said Jason Tatge, CEO of Farms Technology. "Fully
automated hedging and purchasing of grain allows producers to
execute cash sales of grain anytime the markets are trading, day
or night. For grain buyers, it gives their customers the
opportunity to lock in purchases that are automatically hedged
around the clock when their competitors can't."
Grain buyers currently must contact their commodities broker by
phone or Internet to place their hedge when they buy corn from a
producer. The e-Pit technology allows buyers to automatically
purchase corn from growers by instantly selling offsetting
futures contracts to execute hedges. The service helps protect
the buyers' margins and has the potential to significantly
reduce price risk involved with "slippage" due to the velocity
of today's price changes on the exchanges.
The e-Pit technology monitors cash offers against every tick of
the futures market from 9:30 a.m. to 1:15 p.m. and from 6 p.m.
to 6 a.m. using the Chicago Board of Trade, Kansas City Board of
Trade and Minneapolis Grain Exchange electronic futures markets.
The e-Pit technology currently works with futures commission
merchants R.J. O'Brien, Rosenthal Collins Group and FCStone and
is working on adding others in the near future.
The MarketPoint resource was established by Pioneer in early
2008.
Available at
http://www.marketpoint.pioneer.com, it allows growers to
post their high-quality grain for sale to local buyers who make
competitive bids based upon quality and quantity information
posted to the site. In turn, local grain buyers are able to
source this higher value grain to help maximize efficiency,
whether it is in their ethanol plants or feedlot operations.
Foresman anticipates the addition of e-Pit will ultimately
benefit growers using MarketPoint resource as well as buyers,
because it will entice more buyers to use the resource since the
e-Pit technology is only available through the MarketPoint
resource and allows buyers to safely purchase corn day or night.
Farms Technology, LLC is the industry leader for online grain
marketing and has been serving the grain business by providing
the electronic marketplaces with a mission of providing simple,
useful tools to farmers and grain buyers that help improve
efficiencies. Pioneer purchased an equity stake in Farms
Technology in April 2008.
Pioneer Hi-Bred, a DuPont business, is the world's leading
source of customized solutions for farmers, livestock producers
and grain and oilseed processors. With headquarters in Des
Moines, Iowa, Pioneer provides access to advanced plant genetics
in nearly 70 countries.
DuPont is a science-based products and services company. Founded
in 1802, DuPont puts science to work by creating sustainable
solutions essential to a better, safer, healthier life for
people everywhere. Operating in more than 70 countries, DuPont
offers a wide range of innovative products and services for
markets including agriculture and food; building and
construction; communications; and transportation.
The DuPont Oval Logo, DuPont™, The miracles of science™,
MarketPoint®, and e-PitSM are registered trademarks,
trademarks or servicemarks of DuPont or its affiliates. |
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