WDG Index Pricing Contracts
Weekly Average Corn Price Week Ending 7/23/10
SDWG West Term $3.08
SDWG Huron $3.08
Dakotaland Feeds, LLC will offer Index Pricing Contracts on Wet Distillers Grains as per the following terms:
1. Current contract offering period will run through October 31, 2009
2. Contract must specify total tonnage contracted as well as monthly tonnage commitment.
Example
Contract Period: July 1, 2009 to September 30, 2009
Tons Contracted: 600 (July 100, August 200, September 300)
Price: Index Pricing
3. Tons in excess of monthly commitment will be billed at Spot Price for that month
4. Tons of underfill of monthly commitment may be subject to a Market Loss Provision per contract or may be rolled forward at the discretion of Dakotaland Feeds
Establishment of Weekly Index Price
1. Price for the following week will be established each Friday afternoon following close of the commodities markets.
2. Corn price will be Simple Average of the Huron local bid for corn from Monday through Friday. Index Price of WDG for the following week will be 77% of the price per ton of corn calculated on a Dry Matter (DM) basis.
Example WDG (Below is an example only and will not reflect the pices above)
Five day simple average local bid on corn = $2.72 SDWG
$2.72 corn/ 56 X 2000/.85 DM Corn = $114.29/ton on a DM basis
77% Index X $114.29/ton = $88.00 Dry Matter
Huron: $88.00 X .33 WDG DM= $29.04
AB1 : $88.00 X .30 WDG DM = $26.40
AB2: $88.00 X .36 WDG DM = $31.68
Dakotaland Feeds, LLC reserves the right to modify or discontinue this offering at any time. All other conditions as stated in the contract apply. This sheet is for example purposes and in no way is intended to be a firm price offering or contract.
7-6-09
