Grain Marketing Services Available

Price Later Contract
Purpose: To deliver grain without establishing a price.

When to use:

• When you need to move grain and the flat price or basis is not acceptable
• When price later charges are less than storage
• When the quality of grain is a concern

Basis Contract

Purpose: To lock in a premium or good basis level when flat price is not satisfactory.

When to use:

• When cash prices are low (When premiums are good but CBOT is low or unsatisfactory)
• To allow delivery of grain and also allow for price improvement
• To get partial payment (an advance) on the grain yet have potential gain if the CBOT goes higher

CBOT Options

Purpose: To establish floors under the market when selling or ceilings when buying.

When to use:

• When you need cash flow, but want to maintain ownership of the grain

Futures/Cash Contract (Hedge to Arrive)

Purpose: To lock in futures price without establishing a basis

When to use:

• When the market is peaking and heading lower.
• When the basis is very poor

Cash Contract

Purpose: To establish a fair market price, when price is satisfactory

When to use:

• When you feel the market is at a good price level.
• When you feel the market is going lower
• When you need to move grain

CBOT Futures

Purpose: To establish a purchase or selling price

When to use:

• When you feel the market is at the very high end of very low end of its range

Deferred Income Provision

Purpose: To sell grain in one year and receive payment in the following year.

When to use:

• When prices are high but you need payment after year end.
• When there are little or not carries in the market so you sell grain but want payment after year-end. (Note: Check with your Tax consultant)

Other Services Available

• Flat Pricing
• Deferred Payment Contracts
• Minimum Price Contracts
• Specialty Grain Marketing Contracts

Back to top