Specific plans to reach your goal
Priced contracts are fixed, meaning they have specific delivery requirements and no flexibility on final price.
Advantages of a Priced Contract:
With this contract, pricing flexibility and delivery are eliminated and there is no chance for further price increases.
Board price must be set prior to expiration date in the contract. Basis contracts may be rolled forward to another board contract month, at the spread between the futures months, plus a fee for a contract change. Advantages of a Basis Fixed Contract:
If this contract is chosen, the future basis improvements cannot be realized. You remain subject to the risk of changes in the CBOT futures prices. This contract also requires knowledge of local historical basis. *Offerings subject to change without notice. The above contracting tool involves market risks and may not be appropriate for all producers.
Board price must be set prior to expiration date in the contract. Basis contracts may be rolled forward to another board contract month, at the spread between the futures months, plus a fee for a contract change.
At the time of an HTA contract, the board price is established, and final price is then determined when the basis is set. The basis must be set prior to time of delivery or before the contract expiration date. The HTA contract takes advantage of high futures levels, leaving opportunity for basis to improve. Futures downside price risk is eliminated, and the producer has no margin calls or exchange fees. Advantages of an HTA contract:
When an HTA contract is chosen the producer is open to the basis-level getting worse, cannot take advantage of futures rallies and cannot trade in and out of HTA contracts as with futures contracts. The delivery of the contract is mandatory, and payment is not received until basis is set and the grain is delivered. *Offerings subject to change without notice. The above contracting tool involves basis risk and may not be appropriate for all producers.
At the time of an HTA contract, the board price is established, and final price is then determined when the basis is set. The basis must be set prior to time of delivery or before the contract expiration date.
The HTA contract takes advantage of high futures levels, leaving opportunity for basis to improve. Futures downside price risk is eliminated, and the producer has no margin calls or exchange fees.
A Minimum Priced Contract establishes a guaranteed base price protecting a producer against lower prices but permits participation if the market rallies. The final price will be the minimum price plus any value the option provides if the market rallies prior to the expiration of the option. The advantages of a minimum price contract:
This contract requires selling in 5,000-bushel increments. *Offerings subject to change without notice. The above contracting tool involves market risks and may not be appropriate for all producers.
A Minimum Priced Contract establishes a guaranteed base price protecting a producer against lower prices but permits participation if the market rallies. The final price will be the minimum price plus any value the option provides if the market rallies prior to the expiration of the option.
A Delayed Priced Contract allows a producer to move grain to a Co-Alliance location without establishing any price. Charges are subject to market conditions. Advantages of a Delayed Pricing Contract:
Unlike storage, title to the grain passes to the buyer upon delivery. Delayed Pricing contracts are subject to basis and futures price risk.
*Offerings subject to change without notice. The above contracting tool involves market risks and may not be appropriate for all producers
A Delayed Priced Contract allows a producer to move grain to a Co-Alliance location without establishing any price. Charges are subject to market conditions.
A Price Target Offer contract takes advantage of short-lived day or night rallies. If a price target contact is chosen the grain will be priced at an offer, and if the market rallies past the set offer, additional gains will not be realized. Advantages of Price Target Contracts:
*Offerings subject to change without notice. The above contracting tool involves market risks and may not be appropriate for all producers.
A Price Target Offer contract takes advantage of short-lived day or night rallies. If a price target contact is chosen the grain will be priced at an offer, and if the market rallies past the set offer, additional gains will not be realized.
Structured grain contracts are cash contracts designed to meet the producer’s specific pricing needs. Advantages to a Structed Grain Contract:
Structured grain contracts do involve some added risk such as double-up and knock-out. The producer’s risk is reflected in the price requested.
Structured grain contracts are cash contracts designed to meet the producer’s specific pricing needs.
Managed Bushel Program contracts remove the emotion from selling by placing marketing decisions in the hands of algorithmic-driven deep market artificial intelligence or human traders with years of proven trade expertise. Advantages of Managed Bushel Programs:
Managed Bushel Program contracts remove the emotion from selling by placing marketing decisions in the hands of algorithmic-driven deep market artificial intelligence or human traders with years of proven trade expertise.
Connect with a Co-Alliance grain team member to start building your marketing plan today.