Grain marketing can be a difficult concept that many farmers may try and avoid.
Coming to terms with understanding how marketing options work, and how to use them to your best advantage is imperative in order to achieve your goals. At Woodall Grain Company, we can help you understand the key strategies that can make a big difference in your operation's success.
We offer a variety of grain contracting options, and will work with you to choose the option best suited for your unique situation.
Contract Options
SPOT
The selling of grain “across the scale.” You receive the current price at the time of delivery. There is no obligation to deliver more grain at a future date.
FORWARD
This contract allows you to secure a cash price, locking in both futures and basis and setting the delivery period.
BASIS
Allows you to lock in the relationship between the cash market price and the futures price (the basis) to deliver grain at a future date. You may deliver the grain without the futures price.
DELAYED PRICING
This is an unpriced contract in which you deliver the grain with no price established. Both basis and futures levels are left open and will be established at a later date. The title will be passed to Woodall Grain at time of delivery.
HEDGE-TO-ARRIVE
An initial contract establishes the bushel amount, the delivery period, and the futures price. The basis will be set at a later date, prior to delivery.
MINIMUM PRICE
Allows you to lock in a minimum cash price for grain while providing the opportunity to take advantage of any price rally by establishing a “final price” within the designated pricing period.
MINIMUM/MAXIMUM PRICE
Allows you to lock in a minimum cash price for grain while providing the opportunity to take advantage of any price rally within a designated price range.