Grain is delivered to the elevator for the current cash price. Unless specified, bushels delivered for cash/spot sale will receive the closing price on the day the grain is delivered.
Fixed Price Contract
An agreement that establishes a fixed price, Chicago Board of Trade plus local basis, for a specified amount of grain to be delivered to a named location during an agreed upon delivery period.
An agreement that establishes basis, which is the difference between the Chicago Board of Trade and the local cash grain price, for a specified amount of grain for any delivery period and location. The basis is the only fixed portion of the price. A monetary advance can be requested after delivery of the bushels. Final Pricing must be completed prior to an agreed upon expiration date.
Target Price Order
The customer sets a target price that if hit will result in a fixed price contract or as a pricing for delayed price bushels. If the target is hit the contract is written or the delayed price bushels are settled.
Hedge to Arrive Contract
An agreement that establishes the Chicago Board of Trade price for a specified amount of grain to be delivered to a named location during a specified delivery period. The delivery period cannot exceed 12 months from the contract date. The futures price is the only fixed protion of the price. Final pricing must be completed prior to an agreed upon expiration date or at time of delivery, whichever occurs first. Service fees will apply.
Grain can be delivered to the elevator with title passing to Heritage Cooperative. The customer can price the grain for the current market price at a later date.
Grain is delivered to the elevator and title remains with the customer. Open storage is commonly used for government loan programs. Space available for open storage may be limited and storage rates will apply.
The customer may elect to defer payment for grain delivered against contracts or spot sales. Deferred payment periods are pre-set and current interest rates apply.
Brokerage services are available for producers interested in setting up hedging accounts for their personal farm operation and risk management practices.