Spot Sale – Grain is sold the day it is delivered for current cash price. Unless otherwise stated at the scale, spot price will be the price at the close of the day.
Priced Contract – An agreement between the producer and the elevator that establishes price, delivery time, delivery location, commodity and bushel amount.
Basis Contract – An agreement between producer and the elevator that establishes delivery time, delivery location, commodity, and bushel amount. The only part of the price that is set is the basis. The futures off of the Chicago Board of Trade and cash price are to be set by an agreed upon expiration date. Producer may request an advancement of funds against this type of contract once bushels are delivered.
Firm Offer – Producer may set a target offer for a specified number of bushels, if this target hits it will result in a fixed price contract. This may be used for bushels to be delivered yet or bushels on delayed pricing.
Hedge to Arrive Contract – An agreement between producer and the elevator that establishes delivery period, delivery location, commodity and bushel amount. The only part of the price that is fixed is the futures off of the Chicago Board of Trade. Final pricing must be completed by the time of delivery.
Price Later Contracts – (Also known as Delayed Pricing) Unpriced grain can be delivered to the elevator, title of grain passes at the time of delivery. Producer can set price at a later date. There are service fees that apply to this option, they are subject to market conditions and may change.
Deferred Payment – Customer may elect to have the elevator hold payment for grain until after the first of the year. Checks are written January 3 and mailed then.