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CONTRACT TYPES 04/16/15 2:12:55 PM
| We offer a variety of contracts. When we do contracts by phone a paper contract is mailed the same day with the details of the contract spelled out. Please sign and return these promptly. CONTRACT PRICE= FUTURES PRICE MINUS BASIS LEVEL. We offer the following contracts. 1. Cash Both the futures price and basis levels are set for a certain amount of corn to be delivered during a certain month. 2. Basis Fixed The basis level is set for a specific amount of corn and a specified month. Prior to delivery the futures price must be set, during trading hours ( 9:30 until 1:15) 3. Futures Fixed The futures price is set for a specific amount of corn to be delivered during a specified month. The basis level needs to be set before delivery. These contracts are subject to a service charge. 4. Minimum Price This is the same as the cash contract with the addition of a call option. The cash price minus the option premium is the least you will receive for your corn and if the market rallies above your strike price, you will receive the additional gain when you exercise the option. 5. Delayed Price When space allows, we may,at our discretion, offer this at a charge to be determined. These bushels usually must be priced prior to the start of harvest. Please contact Austin or Julie with contracting needs or questions about our contract types. Phone (605) 862-6107.
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