The Competitive Drawing Arc Monitor assesses the economics and risk of buying, storing, and handling grain in each location across the US and compares the economics of different areas of interest. The monitor uses a user-specified center, radius, and crop to show and analyze the drawing arcs surrounding competing facilities.

Customers Use the Model to: 

  • Forecast production of corn and soy within a radius of the facility, and quickly analyze production-weighted pricing around a facility
  • Compare prices in basis per bushel around a facility, and compare with historical basis prices
  • Perform competitive analysis of how much more others are willing to pay per bushel in the surrounding area 
  • Analyze how the realized basis price may change as trucking distance changes

Why It Matters

The Drawing Arc Monitor helps Gro users to understand the supply of corn and soybeans available near grain facilities in the United States. The tool shows current and historical production-weighted basis price information that dynamically updates as users change the radius or trucking rate in the app. The app can analyze up to six facilities simultaneously, and shows how different facilities compete for bushels when their drawing arcs intersect. This can be useful for analyzing potential supplier relationships or competitive facilities.

For grain buyers, the tool can be used to directly analyze the bushels available to them, the price they are likely to have to pay, and how they will compete with nearby facilities. Buyers can also perform sensitivity analyses for how traveling further or paying more will change the realized cost basis.

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