Cash ContractA contract to sell grain that establishes a futures price and basis in a firm delivery window.
more info
HOW DOES IT WORK: The producer agrees to sell a specific quantity of grain for a specific delivery period at a given futures and basis price. WHEN TO USE:
|
Average PriceA contract to sell grain that establishes price in a window that historical seasonal tendencies are typically the highest.
more info
HOW DOES IT WORK: The producer agrees to sell a specific quantity of grain for a specific delivery period. The bushels are priced over the specified period resulting in an average of the prices observed. ADVANTAGES:
|
DP ContractA contract that allows the grower to haul their grain today, but to price it at a later date.
more info
HOW DOES IT WORK: The Grower hauls grain to Zimmerman Feed & Grain, but does not want to price at that time. The DP contract allows the grower to move grain and wait to lock in a price until the contract reaches its expiration date or prices become more attractive and the grower wishes to sell. ADVANTAGES:
|
Premium OfferA firm offer to sell grain that establishes a target cash price in a delivery period.
more info
HOW DOES IT WORK: The producer agrees to sell a specific quantity of grain for a specific delivery period at a specified cash price. WHEN TO USE:
|
Basis OnlyA contract to sell grain that establishes a basis in a firm delivery window.
more info
HOW DOES IT WORK: The producer agrees to sell a specific quantity of grain for a specific delivery period at a basis price. Futures remain unpriced. WHEN TO USE:
|
Minimum PriceA contract to sell grain that establishes a minimum price while offering the flexibility to capture unlimited upside opportunity if the market improves.
more info
HOW DOES IT WORK: The producer agrees to sell a specific quantity of grain for a specific delivery period at a given price. The minimum price is determined by subtracting the cost of the upside participation from the contracted price. Upon delivery the producer will receive the pre-established minimum price, unless the market is above the participation level at delivery. The producer may receive some or all of the market improvement above the participation level. WHEN TO USE:
|
Hedge-to-ArriveA contract to sell grain that establishes a futures only price with basis to be established at a later date.
more info
HOW DOES IT WORK: The producer agrees to sell a specific quantity of grain for a specific delivery period at a given futures price leaving basis open during a specified window of time. WHEN TO USE:
|
Grain BankYour physical grain is kept for you and fed as dictated.
more info
HOW DOES IT WORK: The producer either buys corn ahead or delivers his own grain to the elevator. Corn is put into Grain Bank to be used in feed at a later date. WHEN TO USE:
|
Feed Cash Contract / Forward ContractA contract to buy a commodity that establishes a price in a firm delivery window.
more info
HOW DOES IT WORK: The producer agrees to buy a specific quantity of feed commodity for a specific delivery period at a given price. WHEN TO USE:
|
Basis OnlyA contract to buy grain that establishes a basis in a firm delivery window.
more info
HOW DOES IT WORK: The producer agrees to buy a specific quantity of grain for a specific delivery period at a basis price. Futures remain unpriced. WHEN TO USE:
|