Financial decisions made easier for dairy producers with MARGINSMART.
Source: Dairy Analyzer, LLC
Effective today, Dairy Analyzer, LLC™ announces the release of Version 2.0 of MARGINSMART®. Version 2.0 expands upon the original MARGINSMART Version 1.0 by adding significant upgrades and features to further enhance MARGINSMART as the industry leader in providing dairy producers financial tools to make informed financial decisions.
One major enhancement of Version 2.0 includes new powerful tools to handle and account for options contracts for milk and grains. The new features allow users to specifically identify options strategies, and then incorporate multiple options contracts into a single strategy. Users can also identify whether or not the strategy is a price protection strategy for purposes of determining quantities subject to price risk. Most importantly, users can enter information for any Class III milk, Class IV milk, corn, soybean or soybean meal put or call option, purchased or sold, over any future 24 month period and MARGINSMART will calculate the current value versus the value at purchase or sale continually throughout the trading period, and incorporate the unrealized gain or loss into each users’ blended milk price or feed costs. MARGINSMART includes easy features to close options and then displays all open and closed options contracts for easy viewing. The combination of the new features of Version 2.0 will allow users to include all their options into MARGINSMART, identify the financial impact on margins and profitability and see the impact on the quantities of each commodity for price risk management purposes.
A second enhancement includes bringing Class IV milk prices and features into MARGINSMART. Going forward all Class IV futures and options prices will be available within Version 2.0 in a similar fashion to Class III milk. In response to customers in various Federal Milk Market Orders, Version 2.0 will allow users to include a basis level to Class IV milk and then allow them to split their farm’s market price between Class III and Class IV milk. In addition, users can incorporate any Class IV futures or options contracts and MARGINSMART will automatically calculate any unrealized gains or losses on those contracts continually throughout the trading day.
Additional features include expanded tools for displaying information within the program and expanded reports. Since MARGINSMART projects milk margins and net income levels for up to 24 months, one report in particular will allow users to graph the historical margins and net income for any month for any number of days at any time. With the enhanced features of MARGINSMART, the user will see the daily high, low and last margin and net income per cwt. available for any month at any time.
Founded in 2012, Dairy Analyzer, LLC is privately owned and is committed to providing financial tools to dairy producers to allow them to make management decisions that positively impact profitability. For more information on MARGINSMART visit www.marginsmart.com or contact them at 877-474-7589.