Methods and systems for purchase of commodities

• US 20040024648A1
• Filed: 08/01/2002
• Published: 02/05/2004
• Est. Priority Date: 08/01/2002
• Status: Active Grant

• Current Assignee: Farms Technology, LLC (Corteva, Inc.)
• Original Assignee: Farms Technology, LLC (Corteva, Inc.)
• Inventors: Tatge, Jason G., Fritsch, Daniel Scott
• Granted Patent: US 7,840,475 B2
• Time in Patent Office: Days
• US Class Current: 705/26
• CPC Class Codes: G06Q 30/0226 Incentive systems for frequent usage, e.g. frequent flyer miles programs or point systems
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]
• CPC Class Codes: G06Q 30/0635 Processing of requisition or of purchase orders
• CPC Class Codes: G06Q 30/0641 Shopping interfaces
• CPC Class Codes: G06Q 30/08 Auctions
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

The invention is directed to methods and systems for commodities procurement with concomitant hedging. The invention enables automatic commodity purchase at a desired basis level when a seller'"'"'s price matches a buyer'"'"'s basis bid and concomitantly automatically placing an electronic commodities order to hedge the buyer'"'"'s purchase.

Claims

1. A method for purchasing a commodity comprising:

(a) providing bid data for the commodity on a network platform, the bid data provided by a buyer;

(b) providing one or more sell data parcels for the commodity on the network platform, each sell data parcel corresponding to a particular seller;

(c) providing hedge transaction information respecting a listed hedge commodity, the hedge transaction provided by the buyer;

(d) monitoring the bid data and the one or more sell data parcels;

(e) automatically identifying a conforming sell data parcel, which conforms to the bid data; and

(f) automatically executing the buyer'"'"'s hedge transaction.

2. The method of claim 1, further comprising automatically notifying the buyer and the particular seller corresponding to the conforming sell data parcel of conformance.

3. The method of claim 1, further comprising automatically withdrawing the bid data from the network platform upon identifying the sell data parcel conforming to the bid data.

4. The method of claim 1, wherein the network platform comprises one or more internet servers comprising one or more web pages.

5. The method of claim 4, wherein providing the bid data comprises entering the bid data by way of the one or more web pages.

6. The method of claim 1, wherein the bid data comprises a bid price.

7. The method of claim 6, wherein providing the bid data comprises periodically calculating the bid price for the commodity based on the current exchange rate for a listed commodity and periodically updating the bid price.

8. The method of claim 7, wherein the listed commodity is the hedge commodity.

9. The method of claim 1, wherein providing information respecting the hedge transaction comprises identifying the listed hedge commodity and specifying a quantity to be purchased or sold.

10. The method of claim 6, wherein the one or more sell data parcels comprises a sell price.

11. The method of claim 10, wherein the sell date parcel conforms to the bid data parcel when the sell price matches the bid price.

12. The method of claim 1, wherein automatically notifying the buyer and the particular seller comprises sending an e-mail message.

13. The method of claim 1, wherein automatically executing the hedge transaction comprises buying or selling the listed hedge commodity.

14. The method of claim 1, wherein automatically executing the hedge transaction electronically comprises buying or selling the listed hedge commodity through an introducing broker or futures clearing merchant.

15. The method of claim 1, wherein automatically executing the hedge transaction comprises electronically selling a futures contract through a futures clearing merchant.

16. A system for purchasing a commodity comprising:

(i) a memory storage device;

(ii) a processor connected to the storage device;

(iii) a program for controlling the processor;

wherein the memory storage device and the processor are operative with the program to;

(a) provide bid data for the commodity on a network platform, the bid data provided by a buyer;

(b) provide one or more sell data parcels for the commodity on the network platform, each sell data parcel corresponding to a particular seller;

(c) provide hedge transaction information respecting a listed hedge commodity, the hedge transaction provided by the buyer;

(d) monitor the bid data and the one or more sell data parcels;

(e) automatically identify a conforming sell data parcel, which conforms to the bid data; and

(f) automatically execute the buyer'"'"'s hedge transaction.

17. The system of claim 16, wherein the system is operative to automatically notify the buyer and the particular seller corresponding to the conforming sell data parcel of conformance.

18. The system of claim 16, wherein the system is operative to automatically withdraw the bid data from the network platform upon identifying the sell data parcel conforming to the bid data.

19. The system of claim 16, wherein the memory storage device, the processor, and the program are located on an internet server.

20. The system of claim 16, wherein the network platform comprises one or more internet servers comprising one or more web pages.

21. The system of claim 20, operative to provide the bid data by a route that comprises entering the bid data by way of the one or more web pages.

22. The system of claim 16, wherein the bid data comprises a bid price.

23. The system of claim 22, operative to provide the bid data by a route that comprises periodically calculating the bid price for the commodity and periodically updating the bid price.

24. The system of claim 23, wherein the bid price for the commodity is calculated based on a current exchange rate for the listed hedge commodity.

25. The system of claim 22, wherein the one or more sell data parcels comprises a sell price.

26. The system of claim 25, wherein the sell date parcel conforms to the bid data parcel when the sell price matches the bid price.

27. The system of claim 16, operative to automatically notify the buyer and the particular seller by a route that comprises sending an e-mail message.

28. The system of claim 16, operative to automatically execute the hedge transaction by a route that comprises buying or selling the listed hedge commodity.

29. The system of claim 16, operative to automatically execute the hedge transaction electronically by a route that comprises buying or selling the listed hedge commodity through an introducing broker or futures clearing merchant.

30. The system of claim 16, operative to automatically execute the hedge transaction by a route that comprises electronically selling a futures contract through a futures clearing merchant.

31. A computer readable medium encoded with a computer program that causes a system comprising a memory storage device and a processor to perform the steps of:

(a) providing bid data for the commodity on a network platform, the bid data provided by a buyer;

(b) providing one or more sell data parcels for the commodity on the network platform, each sell data parcel corresponding to a particular seller;

(c) providing hedge transaction information respecting a listed hedge commodity, the hedge transaction provided by the buyer;

(d) monitoring the bid data and the one or more sell data parcels;

(e) automatically identifying a conforming sell data parcel, which conforms to the bid data; and

(f) automatically executing the buyer'"'"'s hedge transaction.

32. The computer readable medium of claim 31, wherein the computer program further causes performance of the step of notifying the buyer and the particular seller corresponding to the conforming sell data parcel of conformance.

33. The computer readable medium of claim 31, wherein the computer program further causes performance of the step of withdrawing the bid data from the network platform upon identifying a sell data parcel conforming to the bid data.

34. The computer readable medium of claim 31, wherein the network platform comprises one or more internet servers comprising one or more web pages.

35. The computer readable medium of claim 31, wherein the bid data comprises a bid price.

36. The computer readable medium of claim 35, wherein the computer program causes performance of the step of providing the bid data by a route comprising periodically calculating the bid price for the commodity and periodically updating the bid price.

37. The computer readable medium of claim 36, wherein the bid price for the commodity is calculated based on a current exchange rate for the listed hedge commodity.

38. The computer readable medium of claim 35, wherein the one or more sell data parcels comprises a sell price.

39. The computer readable medium of claim 31, wherein the bid data and one or more sell data parcels are located on or provided by the network platform.

40. The computer readable medium of claim 38, wherein the sell date parcel conforms to the bid data parcel when the sell price matches the bid price.

41. The computer readable medium of claim 31, wherein the computer program causes performance of the step of notifying the buyer and the particular seller by a route comprising sending an e-mail message.

42. The computer readable medium of claim 31, wherein the computer program causes performance of the step of executing the hedge transaction by a route comprising buying or selling the listed hedge commodity.

43. The computer readable medium of claim 31, wherein the computer program causes performance of the step of executing the hedge transaction electronically by route comprising buying or selling the listed hedge commodity through an introducing broker or futures clearing merchant.

44. The computer readable medium of claim 31, wherein the computer program causes performance of the step of executing the hedge transaction by a route comprising electronically selling a futures contract through a futures clearing merchant.