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Welcome

Welcome to GrainClass.com. This is an interactive online contest designed to give farmers an opportunity to test their marketing skills with a chance to win big prizes. In this simulation, marketers will trade corn and soybeans on the cash, futures and options markets to better understand the mechanics of pricing crops in today's fast-paced agricultural world.

Overview

The intent of GrainClass.com is to give producers a chance to test the marketing skills they've developed through market education in a realistic, simulated environment. We have found that marketing 'students' often lack the confidence to use their skills until they have worked with the tools themselves. With GrainClass.com, participants are able to apply their new skills and test their marketing strategies in a real life situation without actual risk.

Sign Up to Play

To sign up for a password, which will enable you to use the Web site, compete and make simulated trades, go to www.GrainClass.com

1. Click on the 'Sign Up' button to Register to Play for Free.

2. In Registration Step 1, fill out the information requested and select a user name and password.

3. In Step 2, you will get to pick which local cash market you would like to trade in based on more than 1,600 elevators. By default, the nearest market to your entered ZIP code will be used, but you may opt to select a different market at this point.

4. After activating your account, please take a few moments to fill out the short Marketing Savvy Quiz in Step 3.

5. In Registration Step 4, an e-mail message will be sent to you that provides a link for activating your account for trading. IMPORTANT: You will not be able to trade until you have clicked on the link in the e-mail and activated your account.

6. Click Finish to return to the Home Page.

Playing the Game

The game begins on June 1, 2009. Your job is to market your corn and soybean crop utilizing futures and options contracts, and making sales in yuor local cash market. Want to short the futures market? No problem! Think you should buy some puts as protection? Give it a try! The decisions are up to you as you make the trading decisions in the futures and options market based on real-time prices.

You can sell it in the cash market when you wish until the end of the game on October 1, 2009. During the contest, you are free to buy and sell futures and options contracts to hedge your positions. Remember, a commission of $30 will be charged for every 'turn' or trade ($60 per round-turn trade) that you make and all open futures and options contracts will be closed at the end of the game. There are no commissions for cash trades. Commodities, quantities and commissions for each game are listed on the game description page..

Home Page

Open your Internet browser and enter the Internet address (URL): www.GrainClass.com. The GrainClass.com default home page will appear. Enter your Username and Password and click GO to display your personal Home Page. The Account Information, Game Standings, Charts, Futures Prices and Cash Prices will now be customized to your GrainClass.com account.

* Your Account shows two prices: your current achieved price and your national benchmark price for each of the commodities you are trading. The prices are calculated daily at 5 p.m. CST. The current achieved price is calculated using your local basis and is the price you actually ‘traded.’ Your national benchmark price is a U.S. average of corn and soybean bids from CashGrainBids.com. These prices are average prices paid at country elevators around the country and will be used for determining winners and rankings in GrainClass.com.

* The Leaderboard lists the five players with the highest net-price achieved for corn and soybeans in the based on the U.S. average benchmark cash prices. The net-price includes any profits or losses on futures/options trades plus the value of your cash grain (sold and unsold).

* Futures Quotes shows 10-minute delayed quotes. Click on a commodity to view all quotes for that commodity by exchange. From the detailed quotes screen, click on the 'C' to display a futures chart. Click on the 'O' to display current options quotes for each contract.

* The Cash Prices shown are specific to the cash market locations and commodities being traded. Click a cash market location to display a cash chart. Cash prices will be updated daily at approximately 5 p.m. CST.

Menu

* Home: Use this tab to return to your customized home page.

* Account Status: A summary of your account with links to detailed reports of your trading activity. This page shows sales, net inventory, incurred costs, profit and loss, and net local price and national benchmark price for each commodity you are trading.

* Cash Trade: Transaction page for executing cash sales of your commodities. Your unsold inventory is shown on this page along with cash and basis quotes for your local market and the national market being used for your game. When you make a cash trade, we will keep track of your local traded price and the national price at the time of the trade. Remember, the national price is what is used for the competition while your local price lets you know how you would do in your area.

* Futures Trade: Transaction page for executing a futures trade. Also shown here is your profit on existing futures trades for each commodity along with a listing of current futures quotes.

* Option Trade: Transaction page for executing an options trade. Also lists your current options trade profit and current futures quotes, which link to option prices for each contract and commodity.

* Open Orders: Lists your open cash, futures and option orders. A delete button allows you to cancel any open order before it is filled. Note: Once an order is filled, it cannot be deleted.

* Marketing Plan: Written instructions where you can list your intended trading activities by month.

* Library: An extensive marketing guide written by Dr. Kevin McNew, Montana State University Extension Marketing Specialist. The guide is an excellent educational reference on marketing principles.

Account Status

To view the status of your account, click on the Account Status tab in the top menu. This page shows a summary, by commodity, of your account activity. View your original assigned production for each commodity, the quantity sold and the value of those sales. Your unsold inventory and its current value will be calculated based on the most recently posted cash price. Futures and options profits (with commission charges already factored in) are also listed here. A net value and net price per unit for each commodity is automatically calculated. This report shows your cash trades based on local prices and national prices. Trades are processed and net prices calculated every 10 minutes from 9:45 a.m. to 2:25 p.m. CST and again at 5 p.m. CST. Note: Since the net price here is a live net price calculated throughout the day, it could differ from the net price shown in Your Account and Top Rankings until the 5 p.m. CST update.

Click on the Detailed Report link under each commodity to view details of the transactions you have made for that commodity. Cash sales details include total sales quantity, price and value; unsold inventory, price and value; accrued storage costs and a calculation of the net cash value. Details for futures and option transactions include the date and time of each trade, the position taken and contract traded, the quantity, price, commission and status of each trade, and the net profit/loss. Note: For futures and options trades commissions are charged half in and half out. Your total commodity value and net price per unit are calculated and shown here.

From the left menu of the Account Status page, you can access a detailed report by transaction type. Click on Cash Sales to view a list of all cash transactions by commodity. The quantity, price and time each contract was filled are shown here. The Futures Positions Report shows quantity, price, time filled and profit/loss for each open and closed futures position. A total profit/loss for all futures positions is calculated. The Options Positions Report lists the quantity, price, time filled and profit/loss for each open and closed options position. A total profit/loss for all options positions is calculated.

Cash Trade

To make a sale on the cash market, click on the Cash Trade tab in the top menu. For the purposes of this exercise, as with most agricultural operations, you will only sell on the cash markets. Cash sales cannot be executed before the assigned harvest date.

In Step 1, select the commodity you want to sell from the drop down menu.

Then enter the quantity you wish to sell in Step 2. Use an amount in bushels for corn and soybeans. Note that on the cash markets, you can sell any quantity that you choose (as opposed to futures and options markets, which must be traded in standardized quantities per contract). You may not sell more of a commodity than you own. If you enter an amount greater than the amount you have available, you will receive an error message prompting you to enter a smaller amount. Do not label the number you enter in Step 2. Letters are not recognized and you will be prompted to enter a positive number.

At-The-Market

In Step 3, choose whether this cash sale will be 'At-the-market' or at a 'Set Price.' If your cash sale is 'At-the-market,’ skip Step 4 and click the Submit button.

You will then be asked to verify your transaction. If you click 'Yes, Submit Trade,’ the Open Orders page is displayed and your trade is listed. You can delete this trade from the open orders page if you do so before the order is filled. Cash orders that are at-the-market will be filled within 10 minutes of submitting the trade. If you click 'No, Cancel Trade', you are taken back to the Cash Trade page and your sale will not be finalized.

Set Price

If, in Step 3, you choose to sell your grain at a 'Set Price,’ you must enter the price at which you want your cash sale filled in Step 4. Click Submit.

You will then be asked to verify your transaction. 'Yes, Submit Trade' directs you to the Open Orders page where your cash trade is listed. Cash orders above the market will be filled when your set price is realized. You may delete this cash order at any time before it is filled. 'No, Cancel Trade' directs you back to the Cash Trade page.

A list of your unsold inventory is also on the Cash Trade page. Current cash price quotes are calculated using current futures quotes and the most recent basis values and are updated every 10 minutes from 8:45 a.m. to 1:25 p.m. and again at 4 p.m. Cash quotes are shown for the corn and soybeans and your local cash price location. Click on the commodity name to display a cash price chart. Basis quotes for your game location are also listed for each commodity. Basis quotes are updated daily at 5 p.m. CST. Click on the commodity to display a basis chart for your game location.

Futures Trade

To make a trade on the futures markets, click on the Futures Trade tab in the top menu to display the futures transaction page.

New Position

Step 1 asks if this is a new position or if you are offsetting an existing position.

If you select 'New Position,’ Step 2 asks whether you are buying or selling a contract and which futures market you are using.

In Step 3, select the contract you are buying or selling. Note: only the months traded in the commodity that you have selected will appear.

In Step 4, choose from 1-10 contracts to buy or sell. The contract size and commission per contract for futures and options are listed on the game description page. You are allowed to make as many futures transactions as you wish. However, commission fees for each contract traded will be charged to your account and all open futures positions will be closed at the end of the game. In this simulation, our emphasis is on 'hedging' and implementation of your marketing plan, not on 'speculating.’ ('Hedging' is a trading system used to manage price risk for producers. 'Speculating' is a trading system in which traders attempt to profit from the volatility of the markets.)

In Step 5, select a type of futures order from 'at-the-market,’ 'set price,’ or 'stop order.’ If 'at-the-market' is selected, skip Step 6 and continue to the verify transaction page.

If you select 'set price' or 'stop' order, enter your price in Step 6. Click Submit and verify your transaction. Your futures order will be listed on the Open Orders page. At-the-market orders will be filled within 10 minutes of submitting the trade if submitted within exchange trading hours. If submitted after hours, orders will be filled when the market opens the next day. Set price and stop order trades will be filled when the set price or stop is realized. Any open order can be deleted before the trade is filled.

Offset Position

If your selection in Step 1 is to offset an existing position, Step 2 will ask you to choose one of your existing futures positions to offset. Click the 'down arrow' to select from your existing open futures positions.

In Step 3, select the quantity in number of contracts that you wish to offset.

In Step 4, select whether this order is at-the-market, at a set price or a stop loss.

For s set-price order or stop loss order, enter the price in Step 5.

Submit and verify your transaction to complete the trade. Your order will be listed on the Open Orders page where it will be filled within 10 minutes of submitting. A trade can be deleted at any time before it is filled. Offsetting an existing position will result in the closing of that position. The detailed report in your Account Status lists all open and closed positions.

Other information on the Futures Trade page includes a link to the game description, a summary of your current futures profit and current futures quotes. Click on a contract to display a futures chart for that contract. Click on all quotes to view detailed futures quotes by commodity.

Options Trade

To make a trade on the options market, click on the Options Trade tab from the top menu. This will bring up the options transaction page.

New Position

In Step 1 select new position or offset position.

If you select 'New Position,’ in Step 2 select whether you are buying or selling an option, the commodity market you are using and whether you are executing a put or a call. In options trading, when you buy a contract, you pay a 'premium.' An option is like an insurance policy for managing price risk. As with any other type of insurance, you pay a 'premium' for that price protection. By buying an option you are essentially paying someone to take on your price risk. If you sell a contract you will receive a 'premium.'

Select your options contract by month and year from the drop down menu in Step 3.

In Step 4 first select the number of contracts you wish to place by choosing a number from 1-10 from the drop down menu. Then select the options strike price from its drop down menu.

In Step 5 choose whether your option trade is at-the-market or at a set price.

Enter a set price in the box in Step 6 if you selected a set price contract. Skip this step if your option is at-the-market.

Click Submit and follow the instructions on the 'Verify Transaction' page. Your open options order will be listed on the Open Orders page. At-the-market orders will be filled within 10 minutes of submitting the trade if submitted within exchange trading hours. If submitted after hours, orders will be filled when the market opens the next day. Set price orders will be filled when the set price is realized.

Offset Position

If your selection in Step 1 is to offset an existing position, Step 2 will ask you to choose one of your existing options positions to offset. Use the drop down menu to select from an existing options position.

In Step 3, select the quantity in number of contracts that you wish to offset.

In Step 4, select whether this order is at-the-market, at a set price or a stop loss.

For a set-price order or stop loss order, enter the option premium price in Step 5.

Submit and verify your transaction to complete the trade. Your order will be listed on the Open Orders page. If at-the-market, it will be filled within 10 minutes of submitting. If set price or stop loss, it will be filled when the set price or stop is realized. A trade can be deleted at any time before it is filled. Offsetting an existing position will result in the closing of that position. The detailed report in your account status lists all open and closed positions.

Other information on the Options Trade page includes a link to the game description, a summary of your current option profit and current futures quotes. Click on any contract here to display all option quotes for that contract. Click on the all quotes link to view detailed futures quotes by commodity. Futures charts and option quotes can also be accessed from the detailed futures quotes screen.

Open Orders

Click on the Open Orders tab in the top menu to see a listing of your cash, futures, and options trades that have not been filled. Cash orders that are at-the-market will be filled within 10 minutes of submitting the trade. You can delete an order from the open orders page by clicking on the delete button and verifying your transaction. Cash orders above the market will be filled when your set price is realized and may be deleted at any time before they are filled. Remember that no trade can be deleted after it is filled.

At-the-market futures orders will be filled within 10 minutes of submitting the trade if submitted within exchange trading hours. If submitted after the futures markets have closed, orders will be filled within 10 minutes of the next day's open. Set price and stop order trades will be filled when the set price or stop is realized. Open futures orders can be deleted at any time before they are filled. To delete, click on the delete button and verify your transaction.

At-the-market option orders will be filled within 10 minutes of submitting the trade if submitted within exchange trading hours. If submitted after the markets have closed, orders will be filled within 10 minutes of the next day's open. Set price and stop loss orders will be filled when the set price is realized. Option orders can also be deleted before they are filled. Click on the delete button and verify your transaction. Once the order is filled, it cannot be deleted.

Other information on the Open Orders page includes a link to the game description and a listing of your three most recently filled trades.

Marketing Plan

A marketing plan can be a useful tool for executing marketing decisions. The Marketing Plan used in the Commodity Challenge consists of three main components:

(1) Marketing Actions - these are written instructions that spell out what trading activities you will perform if the market moves the way you expect.

(2) Default Actions - think of these as your back-up plan. If the market does not move in your favor, what trading actions will you make?

(3) Time Period - The month/year that the marketing actions and default actions are in effect.

To use the Marketing Plan template, click on Add Next Month. In the marketing actions box list the strategies will you use if the market moves in your favor. In the default actions box list the strategies will you use if the market moves against you. Click the finish button. You can refer back to your personal marketing plan throughout the game and edit your plans at any time by using the edit button.

Library

Click on the Library tab from the top menu to access an extensive trading guide written by Dr. Kevin McNew, Managing Partner at GoGrain.com. This is an excellent educational reference on futures and options markets and fundamental and technical analysis. Included in the guide are sections on understanding futures markets, hedging using futures contracts, options contracts for hedging, fundamental analysis of commodity markets, basic technical analysis and a glossary of marketing terms. Click on a section to display its submenu. Click on any title to go directly to that information.