These contracts reward you with a premium price for establishing a firm offer to sell additional grain to Cargill.
- Provide marketing discipline
- Maximize return on your grain
- Premium is in addition to your sale price
- Contracts require a firm offer
- Limited to 25% of your production
Boost Your Bottom Line
Looking for a way to boost prices? Need to establish a marketing plan? Cargill Premium Offer does both. It pays you a premium for your grain above and beyond the cash price. The premium is paid in exchange for a firm offer to sell additional grain for deferred delivery at an established price.
When Is it Used?
Premium Offer should be considered anytime you want to enhance your grain price while at the same time establish a firm offer to sell additional grain for deferred delivery. Offers can be made when selling new crop, or old. The offer will enforce a scale-up marketing discipline to take advantage of potential market rallies.
What are the advantages of the Premium Offer contract?
- Allows you to capture a premium on grain
- You choose the firm offer price and pricing date for the firm offer
- You have no obligation to deliver the grain on firm offer if futures close below the firm offer price on the pricing date
- You may set the basis for the firm offer on the day of writing the contract or any date prior to the firm offer pricing date (local policies may vary)
- Setting a firm offer can be a critical piece of a marketing plan
- Can be tied to a wide variety of grain sale contracts
- You keep the premium regardless of the firm offer outcome
Daily Floor Plus
Price, Participate and Protect
If you want the chance to sell priced bushels above today’s current market, and still have an established guaranteed minimum futures floor price, the Daily Floor Plus contract may be the right choice for you.
When Is it Used?
The Daily Floor Plus contract establishes your futures reference price by pricing an equal portion of your bushels every day during a specified pricing period at a Plus Price, which is often above today’s current market. If the market price for the futures reference month trades at or below a Trigger Price, any remaining bushels will be priced at a guaranteed minimum Floor Price. In exchange for this pricing, you agree to a conditional firm offer for a like quantity. Your conditional offer will automatically be cancelled if the Trigger Price trades.
What are the advantages of the Daily Floor Plus contract?
- On the first day of the pricing period you will sell priced bushels at an attractive level
- Provides a plan with a guaranteed minimum if the market drops
- Reduces stress, frustration, and risk in marketing grain
Information provided is general in nature and is provided without guarantee as to results. The information is not intended to be, and should not be construed as, trading, financial, legal, or tax advice. No warranty is made with regard to the information or results obtained by its use. Cargill, Incorporated, its subsidiaries, and affiliates disclaim any liability arising out of your use of, or reliance on, the information.