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September 9, 2008 |
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September 9, 2008 |
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Overland Park, KS, September 9, 2008 --- Farms Technology, LLC, www.farmstech.com, provider of Internet-based procurement applications for the agricultural industry, has been awarded a patent by the United States Patent and Trademark Office (U.S. Pat. No. 7,418,423) for proprietary technology within its integrated online commodities trading marketplace, the Dynamic Pricing Platform (DPP). This patent-winning technology automatically: (1) monitors flat price physical delivery commodity offers (cash offers) received from farmers and current futures market prices on a commodities exchange in combination with specific basis information supplied by commodity buyers, and (2) automatically generates cash contracts between the farmers and the buyers, as well as futures contracts between the buyers and the commodities exchange.
The patented technology permits buyers to configure the e-Pit component of the DPP system to automatically purchase cash commodities from farmers only when the system has successfully obtained one or more futures contracts to hedge the cash offered contracts. This protects the buyers' margins and substantially reduces or eliminates the market risks associated with executing the offered physical delivery cash contracts without a futures contract already in place.
FarmsTech's e-Pit technology is currently interfacing with futures commission merchants (FCM's) RJ O'Brien, Rosenthal Collins Group and FC Stone and is working on adding others in the near future.
After buyers have entered their buyer-specific basis information, systems operating according to the patented technology are capable of generating the physical delivery cash and futures contracts in a fully-automated manner, without further intervention or oversight from the buyers. Currently, the DPP monitors cash offers against every tick of the futures market from 9:30 a.m. to 1:15 p.m. and from 6:00 p.m. to 6:00 a.m. using the CBOT, KCBT and MGEX electronic futures markets.
"FarmsTech is pleased that the U.S. Patent Office has acknowledged these key innovations embodied in our Dynamic Pricing Platform, specifically the e-Pit component," said Jason Tatge, Farms Technology chief executive officer. "We have always viewed the DPP as an integral tool in the risk management process for cash commodity buyers and sellers. The DPP continues to add tremendous value to participants in the grain procurement process who choose to offer this service to their customers. FarmsTech has long enjoyed a reputation as the leader in online grain marketing and will continue to guide the industry as the migration to electronic grain marketing expands."
About Farms Technology, LLC
Farms Technology, L.L.C., (www.farmstech.com) is the industry leader for online grain marketing and has been serving the grain business by providing the electronic marketplaces with a mission of providing simple, useful tools to farmers and grain buyers that help improve efficiencies. Farms Tech's software suite includes the Dynamic Pricing Platform that electronically connects all three participants (buyer, seller, futures market) in the grain procurement process via the Internet and the Pioneer MarketPointSM Resource, in cooperation with Pioneer Hi-Bred.
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