MARKETING YOUR GRAIN WITH DIDION MILLING 06/20/11 3:39:53 PM|
|* PURCHASE CONTRACTS: This is a corn contract that allows you to lock in your price for future delivery. |
* SELL ORDERS: You pick the price, if the price of corn is reached, then a contract is drawn up and sent to the producer to sign. The offer is kept until it is hit unless cancelled by the seller before the price is reached. We watch the market for you so you don't have to.
* FIXED BASIS CONTRACT: Lock in a basis (the difference between Didion's cash price and CBOT's price). You then can either watch the Chicago Board for the futures price you want or submit a Sell Order and we price out your corn. This contract is for those who feel the basis is narrow but the futures price is to low.
* HEDGE TO ARRIVE CONTRACTS (HTA): Allows you to set the CBOT price and lock in the basis when and if it narrows. This contract is for those who think the board price is high enough but hope the basis will narrow. There is a $.02/bu/month charge on this contract for corn and $.03/bu/month charge on beans.
* AVERAGE PRICE CONTRACT (corn only): The customer commits to a certain amount of bushels to be priced in equal quantities at a specified weekly interval (every Thursday at the close of business) over a predetermined time frame. (18 weeks from February 24, 2011 through June 23, 2011) Historically, the best prices for new crop corn are obtained between January 1st and June 30th. This contract reduces the frustration and stress from marketing your grain.