Methods and systems for managing commodity transactions

Abstract

Commodity transactions can be efficiently managed in an electronic marketplace where commodities can be bought and sold. The electronic marketplace can include various information including bid and ask prices for the commodities. To reduce risk to buyers, hedge transactions can be automatically generated. A buyer may set a cash price using a sliding basis value that can be correlated to a futures market. Additionally, real-time market information can be monitored for numerous markets to simultaneously execute margin targets. Traders can also display graphical information to help them understand trends and make informed trading decisions.

What is claimed is:  
     
         1 . A system for managing commodity transactions, comprising: 
 (i) a memory storage device;    (ii) a processor connected to the storage device; and    (iii) a program for controlling the processor; wherein the memory storage device and the processor are operative with the program to:    (a) provide an electronic marketplace for facilitating commodity transactions; and    (b) provide hedge transactions for commodity buyers, the hedge transactions automatically generated; and    (c) provide at least one decision-support tool for facilitating trading strategies.    
     
     
         2 . The system of  claim 1 , wherein a provided bid price is adjusted in accordance with a predetermined rule.  
     
     
         3 . The system of  claim 2 , wherein the predetermined rule is based at least in part on behavior of a futures market.  
     
     
         4 . The system of  claim 1 , wherein the decision support tool monitors real-time information from a plurality of markets to simultaneously execute a plurality of transactions to 
 obtain real-time market information including input prices and output prices;    determine an input cost based at least in part on the obtained input prices;    determine an output revenue based at least in part on the output pricse; and    determine an amount of profit at least in part based on the difference between the determined output revenue and the determined input cost.    
     
     
         5 . The system of  claim 4 , wherein the input prices include the price of feed.  
     
     
         6 . The system of  claim 4 , wherein the input prices include the price of a feeder animal.  
     
     
         7 . The system of  claim 4 , wherein the output prices include the price of live cattle.  
     
     
         8 . The system of  claim 1 , wherein the decision support tool displays information in a graphical manner.  
     
     
         9 . The system of  claim 8 , wherein displayed information includes a plurality of bars showing periodic changes in cash price.  
     
     
         10 . The system of  claim 9 , wherein the periodic changes in cash price are intraday changes in cash price.  
     
     
         11 . The system of  claim 9 , wherein each of the bars indicate information of one or more of an open price, a closing price, and a price range.  
     
     
         12 . The system of  claim 8 , wherein the displayed graphical information includes technical analysis information.  
     
     
         13 . The system of  claim 1 , wherein false tick information is bypassed.  
     
     
         14 . A method of detecting false tick information to enhance reliability of market data, comprising the steps of: 
 obtaining a first value and a second value;    comparing the first value with the second value; and    holding the second value, only if the second value exceeds the first value by more than a predetermined amount.    
     
     
         15 . The method of  claim 14 , wherein the first value is price information associated with a current market tick and the second value is price information associated with a prior market tick.  
     
     
         16 . The method of  claim 14 , further comprising the steps of: 
 obtaining a third value;    comparing the third value with the second value; and    outputting the second value, only if the second value is not greater than the third value by more than the predetermined amount.    
     
     
         17 . The method of  claim 14 , wherein the predetermined amount is an amount of change.  
     
     
         18 . The method of  claim 14 , wherein the predetermined amount is a percentage value.  
     
     
         19 . The method of  claim 14 , wherein the predetermined amount is entered by a user.  
     
     
         20 . A method of dynamically adjusting a basis value in accordance with incremental changes in a corresponding futures market, comprising the steps of: 
 offering to purchase a specified amount of a commodity for a specified price; and    adjusting the specified price in accordance with a predetermined rule based at least in part on behavior of a futures market.    
     
     
         21 . The method of  claim 20 , wherein the predetermined rule defines a ratio of futures-to-basis values.  
     
     
         22 . The method of  claim 20 , wherein the predetermined rule is input for a buyer of the commodity.  
     
     
         23 . A method of displaying graphical information to analyze trends in a local cash market for a commodity, comprising the steps of: 
 obtaining cash price information for a specified commodity for a specified period for a specified buyer; and    displaying information in a graphical manner associated with the obtained cash price information.    
     
     
         24 . The method of  claim 23 , wherein the displayed information includes a plurality of bars showing periodic changes in cash price.  
     
     
         25 . The method of  claim 23 , wherein the periodic changes in cash price are intraday changes in cash price.  
     
     
         26 . The method of  claim 24 , wherein each of the bars indicate information of one or more of an open price, a closing price, and a price range.  
     
     
         27 . The method of  claim 23 , wherein the displayed graphical information includes technical analysis information.  
     
     
         28 . The method of  claim 27 , wherein the technical analysis information includes one or more of a moving average and a Bollinger Band.  
     
     
         29 . A method of monitoring real-time information from a plurality of markets to simultaneously execute margin targets, comprising the steps of: 
 obtaining real-time market information including input prices and output prices;    determining an input cost based at least in part on the obtained input prices;    determining an output revenue based at least in part on the output prices; and    determining an amount of profit at least in part based on the difference between the determined output revenue and the determined input cost.    
     
     
         30 . The method of  claim 29 , wherein the input prices include the price of feed.  
     
     
         31 . The method of  claim 29 , wherein the input prices include the price of a feeder animal.  
     
     
         32 . The method of  claim 29 , where the output prices include the price of live cattle.