Grain

Office Services

Storage/ Grain Bank / DP
Settlements by Farm
Cash Bid Texts / Email
Fast Historical Delivery Reports
Target Offers / Pricing
Marketing Tools
Multiple Contracting Options
Knowledgeable Staff

Farm Services

Grain Vac
On-Farm Trucking
Specialty Programs (Non GMO, Hard Endo)
Seed Sales- Gold Prairie Seed
Seed Cleaning

Contracts

Cash / Spot Sale

Selling of grain "across the scale" or pricing bushels for delivery that day on the close

Advantages

No obligation to deliver grain at a future date, allows for payment within 24 hours of delivery

Disdvantages

Seller is subject to market volatility that day, risk of market price going up.

DP / Storage

Allows the customer to deliver grain now, but have the opportunity to price it at a later date.

Advantages

Allows for movement of grain when you may be limited on storage and still able to participate in cash price movement

Disdvantages

Cash price may decline, usually a fee associated.

Basis Contract

Allows the customer to lock in the basis for a specific delivery period against a futures month

Advantages

Can take advantage of a favorable basis, receive a cash advance (up to 70% of market value), deliver before setting futures and possibly wait for upward movement of the futures

Disadvantages

Basis levels could improve, Futures prices could decline

Forward Contract

Seller secures a cash price for a specific delivery period for a future month

Advantages

Establishes a cash price at the time the contract is made. This eliminates price and basis risk

Disadvantages

Prices may improve over cash price

HTA Contract

Contract establishes the futures price option for a forward contract, while waiting to set the basis later

Advantages

Customer can lock in a favorable futures price while waiting for the basis to improve.

Disadvantages

Cannot deliver until basis is set, basis could decline, typically there is a fee.

Minimum Price Contract

Allows the customer to lock in a minimum cash price for grain while providing the opportunity to take advantage of a price rally against a designated Futures option month

Advantages

Unlimited upside potential, payment upon delivery against the cash contract

Disadvantages

The premium paid to buy a option call could be lost due to lower futures prices

Average Price Contract

Establishes a deferred delivery period against a futures month to price an agreed equal amount of bushels over an extended period of time . The average of these prices will determine the final contract price.

Advantages

Establishes a cash price over a historically "price friendly" pricing period. Set basis when you want to.

Disadvantages

Prices may improve after the APC has been established