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Commodity Marketing open

Commodity Marketing open

Posted: Monday, August 1, 2011 6:01 pm

A new agri-marketing firm, Commodity Marketing Service, has opened in downtown Union City to help grain farmers market their crops.
Commodity Marketing Service is located upstairs at 800 South First St. and is the fourth location for the company. The company is owned by Jeff Hunt, Richard Hayden and Brent Lyke. The local office is managed by Bryan Divis.
The telephone number for the local office is (931) 625-6229 and the office hours are by appointment only since the staff of seven works primarily in the field.
“CMS specializes in working with a grain producer to manage the marketing of grain to the elevators who have earned the producer’s business over years of good service,” Hunt said. “There are two significant components to the cash price the farmer receives for his grain: The Chicago Board of Trade Futures Price and the basis that can add or take away from the Futures Price.”
CMS approaches the management of Futures Prices in an incremental approach with sales that cater to the individual’s production risks, profitability goals, the time of the year and the client’s personal preferences.
Basis management is usually more aggressively managed by CMS due to it being slightly more predictable and more fundamentally based than futures, according to Hunt.
“We show the client the most value as basis and futures spread managers whether they have on-farm storage or move most of their grain in the fall against contract or use commercial storage,” Hunt said. “We are emotionally tied to servicing the client’s needs rather than being married to the crop which helps with contract execution during certain times within a marketing year. We’ve worked hard for several years to familiarize ourselves with the area and its grain merchanges and markets.”
“I grew up in this area,” Hunt said. “I’m familiar with the history of grain marketing services in the area and simply feel that it’s time to build a service that has a 14-year history of working in the 20 counties’ 500,000 acres CMS services in Kentucky, Indiana and Illinois.”
Hunt said it has been a dream of his to be able to return to West Tennessee and build a business like the one his company operates in Owensboro, Ky. At that office, he estimates 8.6 of every 10 clients retain their services annually.
“All I needed was the right person to do the day-to-day work,” Hunt said. “I’ve found him in Bryan Divis, a former grain merchandiser in Southern Indiana. Bryan is also a producer in Lincoln County. This makes him exceptionally qualified to be able to relate to both production and merchandising.”
“It’s important to understand where both are coming from when marketing a cash crop,” Hunt said. “Knowledge of what’s happening on a client’s farm combined with our ability to use all the tools available at the local elevators sets us apart from a traditional commodity broker or someone who just gives blanket advice. It’s hard to keep up with all the advice one has access to, not to mention acting properly on the advice with a cash sale. We excel in making complicated marketing issues easier to understand, thus easier to execute.”
Hunt said Divis plans on attenting many of the annual field days and area meetings and will be at the 2011 Obion County Fair.
“I welcome the opportunity to have a farmer meeting privately in my office or on his farm,” Divis said.
Divis can be reached by e-mail at briandivis@gmail.com.

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