Cash Price Parts and Formula
Futures (CBOT Price) + Basis = Cash Price
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Forward PricingCash Buy - Sell your grain to Tama-Benton at the posted bid to be delivered in the future. Cash Direct - Sell your grain to the processor through us at the posted basis to be delivered in the future. |
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Hedge to Arrive (Futures Only)Lock in futures now, set basis later. Can roll to capture carry in the market. Open destination for delivery. |
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Basis OnlyLock in basis now, set your futures later. |
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Price Later (when available)Deliver your post-harvest bushels for fee free storage. Price out at posted bid before expiration. |
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Bonus PremiumSelling bushels now and also selling a call on a deferred month. The premium from that call will be added to the cash price of the bushels you are selling now. Upon expiration of the call if the market is at or above the strike additional bushels will be delivered. |
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Average Price (Typically run April-July)Price out a given number of bushels over a given amount of time. In the end you will have an average futures price, you will still need to set basis on. |
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Minimum PriceSell your bushels at the posted price and also buy a call. The cost of the call is deducted off your cash price to establish your minimum price. Sell the call at anytime before expiration and recive that value back on your minimum price. |
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AccumulatorAccumulating bushels at a premium to the current market. Multiple options available. |