Grain Marketing Contracts

Grain Marketing Contracts

Future Only Contract: Gives our farmer-owners the ability to lock in a futures price for a specified delivery time, quantity, and location. They can price the basis at a later date. This contract allows them to establish a futures selling price that is attractive to them and within the pricing restrictions. In order to manage the volatility of futures prices, our farmer-owners have the ability to lock in a price. There is a service charge with this, which is due at the time of settlement.

Basis Contract: Allows our farmer-owners to lock in a basis for a specified delivery time, quantity, and location.  This contract gives our farmer-owners the opportunity to capture a favorable basis. One challenge to this contract is there is no price protection offered as the futures have not been established yet.

High of the Day Contract (Aurora Cooperative Exclusive): This contract allows farmer-owners to sign up a certain number of bushels for a certain time period (usually 100 days). During that time period, a percentage of the bushels signed up are sold at the high trade of every day.

Extended Price Contract: Allows our farmer-owners to sell cash grain and deliver grain right away while allowing them time for higher futures prices. One challenge to this contract is there is no price protection offered as the futures have not been established yet.

Minimum Price Contract: With this contract, farmer-owners establish a guaranteed base price protecting them against lower prices, but also permitting participation if the market rallies.  The farmer-owner sells their cash grain and selects a futures month strike price, and premium price of a CALL option.

Delay Pricing (DP) Contract: This allows farmer-owners to delivery their grain to an Aurora Cooperative grain facility without establishing any price. This contract helps our farmer-owners without on-farm storage avoid historically low harvest prices. This contract is NOT storage as the grain title passes to Aurora Cooperative.

 

To see more of our contracts and to get signed up, contact your local Grain Merchandiser.

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