A Smarter, Easier Way to Capture Market Upside
by Corey Smyth
PCCA is excited to introduce a powerful new marketing tool, Pool+, designed exclusively for members of our seasonal pools. This flexible pricing program enhances your ability to manage price risk and capture upside potential to add value to your pool production, all without the hassle of setting up a brokerage account. Pool+ allows members to combine all the benefits of the seasonal pool with embedded long call or put pricing strategies.
New Marketing Program Gives Pool Members Exclusive Strategic Edge
This program is only available to WTX/OK/KS or STX pool members. To utilize Pool+, members need a farm(s) enrolled in the seasonal pool with a minimum of 50 bales of aggregate pool production from all pool farms. It’s a seamless extension of your existing pool contracts, designed to fit within the flexible acreage-based structure you know and trust.
Pool Pricing Adjustments
Members have the choice to implement Pool+ call and put pricing strategies on their share of production. You’ll choose your preferred futures reference month, bale volume (in 50-bale increments), and price reference. Pricing strategies can be modified or short-dated as needed to align with a level you are comfortable with. Pricing adjustment results are applied to your aggregated physical pool bales as deductions or additions.
No Margin, No Brokerage—Just Results
There’s no margin requirement or brokerage account needed as Pool+ is attached to your current pool contracts, and pricing adjustments are applied to your pool bales. Pricing costs are handled directly through your cotton statements as a deduction, simplifying the process from start to finish. Positive adjustments to pool proceeds are distributed upon request when you are finished applying pricing adjustments and have completed pool deliveries. You’ll receive electronic confirmations anytime adjustments have been applied, and your pricing positions will be available on Member Access and the myPCCA app.
Flexible and Transparent
Members are allowed to purchase up to three call or put Pool+ pricing strategies. Pricing strategies can be sold at any time after purchasing in whole or in part. All call or put strategies you purchased that haven’t been sold by the pricing date will automatically be liquidated with any positive adjustment applied to your pool bales. Expiration notifications will ensure you stay ahead of any pricing deadlines.
Participation Made Easy
To utilize Pool+, all you need to do is have a farm(s) enrolled in the seasonal pool, sign a Master Agreement, and complete a Pool+ addendum confirming your intended acres and APH for each farm enrolled in the seasonal pool. This pricing tool is designed to give you more control, opportunity, and flexibility. It has marketing power built in.
Ready to take advantage?
Pool+ is coming soon. An official launch date will be announced as soon as it is available. Contact us today with any questions or to learn how Pool+ can work for you.
