Grain Marketing Programs

Below is a list of our Grain Marketing Programs available to you for marketing your grain. If you have any questions, please call your local Grain Office or the Main Office.

OPEN STORAGE:You deliver your grain to the elevator of your choice and then you can leave it in storage until you are ready to sell it. At that time, we can write you a check, defer your payment, or convert it to a minimum price contract.

CASH SALE:You deliver your grain and sell it at the current posted price (during market hours). We will write you a check immediately or you can defer your payment.

SELL ORDER CONTRACT:This allows you to set a price for a quantity of grain that you wish to sell. We will then watch the markets for you and if your price is reached, we execute the contract. This contract can then be rolled into a minimum price, flex, or deferred payment contract if you wish. This can be used for in-store grain or to-arrive grain.

DEFERRED PAYMENT CONTRACT:This contract is utilized when you price your grain. If you don't want payment now, you may defer the payment to a later date which you must determine at the time you sign the contract. This contract is mainly used to defer income into the next year for tax purposes. Interest will be paid to you from the date of the contract until date of payment. Once this contract has been signed, it cannot be cancelled and you cannot ask for payment sooner.

TO-ARRIVE CONTRACT:This contract sets a price now for grain that is to be delivered at a future date, usually the next harvest. It sets a date the grain must be delivered by, and once delivered, the contract can be converted into a minimum price contract or a deferred payment contract. (Also called Forward Contract.)

BASIS CONTRACT: This contract can be utilized if you believe the cash basis is at a favorable level and you want to lock the basis in, but want to wait and watch the futures market for a possible rally before locking in the final price.

HEDGE-TO-ARRIVE CONTRACT: This contract allows you to lock in the futures price for the delivery month you select while leaving the cash basis and final cash price you will receive open until a later date.

MINIMUM PRICE CONTRACT: This contract allows you to receive a guaranteed minimum price at the time of contracting the grain, but if the price on the Board of Trade goes higher, you can price the grain above a certain price or strike level. The minimum price wil be at a discount to the current bid and will be determined by the cost of a call option on the Board of Trade selected by the seller. the seller has the option to price the contract out any time during the life of the contract, but only one time.

FORWARD DELIVERY CASH FLEX CONTRACT: This is a to-arrive cash grain contract using a put option strategy. It will protect and/or enhance your cash price similar to a minimum price contract, but with several refinements. After initiating the contract and before the flex pricing date, the seller can elect to flex the price to the posted to-arrive bid or take the contract price or void the contract completely. Upon delivery of the grain, the seller can then roll the price into a minimum price contract or pool or take the cash or payment later contract as settlement. The contract can only be flexed one time. Once the price is flexed or the flex price date has expired, it becomes a cash purchase contract and cannot be voided without penalty.

DELAYED PRICING CONTRACT: This contract is not offered at all times. Signing this contract transfers title of the grain to us, but lets the seller set the price at a later date. Storage on this grain stops the day the contract is signed. This contract typically requires a set date the grain cannot be priced before, but allows the seller to wait an indefinite time after that date to price the grain.

Through these various contracting options, it is our goal to match up the best strategy to your marketing plan. We're here to work with and for you to hopefully improve your bottom line. Contact one of the grain merchandisers in our Main Office or your local Grain Office if you would like further information about any of these various contracts.

*** Note *** We do not purchase grain over the internet!

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