Accumulator Contract
The Accumulator contract is offered periodically. Your bushels committed will be divided by the 45 week pricing period. (ie. 4500 by 45 weeks= 100 bu week). Each Friday February 26th thru Dec 31st if the March11 futures is between 4.67 and 3.70 you will have 100 bushels priced at 4.67 March11 futures. If the March11 futures is at or above 4.67 on a Friday you will have double the bushels sold for that week (200 bu). If at any time during the pricing period March11 futures hits the Knock Out price of 3.70 (day or night trade) the contract pricing is over. Any bushels priced previously stands, but no further bushels will be priced. At the end of the pricing period you will basically have a Hedge to Arrive contract for March11 futures at 4.67, The bushels at 4.67 could be zero if the knock out is hit on the 1st pricing Friday or 9,000 bushel if the March11 futures was at or above 4.67 (double bushels) every Friday, or any increment in between. Basis will need to be set prior to delivery or by Feb 28th 2011. Prices, Knock out prices, and pricing periods will vary. Call for further details.
Price Later Contract (credit sale contract)
Price later contracts are unpriced grain contracts where title to the grain passes to the buyer upon delivery to the elevator. The seller does not set the price or the basis of the grain up front. The sellers will price the grain based on the markets at their discretion before the contract due date. If the seller fails to price the contract before the due date it will automatically be priced at the close for that day. These contracts can also be extended past the original expiration. These contracts can be written for corn or beans and for any bushel amount. The service fee will vary depending on the time of the year and the carry the market offers, but normally will have a front load fee followed by a per bushel per day fee. Please check with your location for current fees. These charges will be deducted at the time of settlement or will be charged annually at the close of our fiscal year (August 31st). All settlements will be on dry bushels using the discounts in place at the time of delivery. Moisture discounts will be applied on bushels delivered over 14% moisture on corn during harvest, 15% balance of the year, and 13% on soybeans. All grade factors will apply unless otherwise specified. See discount page.
Forward delivery or cash contracts
These contracts can be negotiated in person or over the phone with any Ag service division employee. A written contract must follow with all pertinent information; Name of seller, Bushels, Commodity, Price, Delivery period, Whether it needs to be picked up or delivered, and on what size of a truck. A cash contract is for immediate delivery or grain that is already in storage and a forward contract is for delivery in a future predetermined time frame. A bid for cash and the most popular forward bids are published and posted at each Ag service location each afternoon. Other forward bids are available, please give us a call and we will figure one for you.
Hedge to Arrive contract (HTA)
Hedge to arrive contracts are cash market forward contracts in which the futures price has been fixed in the contract, but not the basis. Therefore the final price is not set until a later date. These contracts are offered for both corn and soybeans in 5000 bushel contracts. A contract fee is charged; $.02 - $.04 for 5000 Bu contract. These contracts must be basis priced before delivery. All moisture docks and discounts are deducted as per our regular discount schedule. These contracts can only be traded when the Chicago Board Of Trade is in session.
Minimum Price Contract
Minimum Price contracts are cash grain contracts in which we agree with the seller to set a price floor or minimum price but no ceiling. This contract is a way for a producer to sell cash grain, yet retain a chance for higher prices, by utilizing call options. 5000 bushel contracts are traded for corn or beans. The minimum price per bushel is paid upon delivery of the grain.
Basis Contract
A basis contract is initially unpriced, but with a fixed differential versus a futures contract set within the contract. 80% of the base price of the contract will be paid to the seller upon delivery of the grain. The contract must be final priced before the end of the month prior to the futures month for which the contract is written. All discounts and grade factors in place at the time of delivery will be deducted from the settlement.
Deferred payment contract
A deferred payment contract extends the date for which settlement for grain will be made. Most generally it is a fall forward contract for which the producer does not want the income until the following year. Under no circumstances will a check be made out before the date on the deferred payment contract once the contract has been rendered and signed.
Offer contract
An offer to sell contract is a contract where the producer offers to sell a commodity at a certain price to be delivered at a certain time. We will then monitor the market daily until the determined price is achieved and automatically contract the grain for the producer and notify them.
Specialty grain contracts
We do offer several specialty grain contracts; High oil, waxy corn, STS beans, and Non GMO corn and beans. These contracts all work differently with delivery options, storage, and pricing. Please contact your location for details.
