Traditional Contracts

The basics of grain marketing.

Simplify your grain marketing and sell with confidence.

Adding diversification to your contract portfolio doesn’t have to be complicated. These traditional contracts are a simpler way to lock in your basis or futures price component while capturing upside potential in a volatile market.

 

 

Compare Traditional Contracts

Cash Grain

Add certainty to your grain marketing plan. Cash sales allow you to immediately price your basis and futures, giving you a guaranteed cash price upon delivery and helping you manage cash flow.

  • Add price certainty to your grain marketing plan and eliminate downside risk.
  • Take advantage of forward cash sales for future grain delivery.
  • Choose the delivery period that corresponds with your price goals.
Use if your market bias is:
  • Bear
  • Neutral

No Basis Established (NBE)

Help eliminate risk in a volatile market. This contract is known to many farmers as a “Futures Only” contract. Eliminate the downside risk of the futures market and set your basis on a later date.

  • Secure futures price and delivery period to help eliminate market uncertainty and risk.
  • Set basis on or before your delivery period.
  • Final cash price is the futures price component adjusted for basis.
Use if your market bias is:
  • Bear

Basis

Explore pricing alternatives. A great contract if you like the current basis value but are bullish on the futures market. Work with your Cargill rep to learn more about futures pricing.

  • Secure basis value with corresponding delivery period.
  • Set futures value on or before delivery.
  • Final cash value determined when futures is set.
Use if your market bias is:
  • Bull

Firm Offer

Don’t miss out on a sale. Use this contract when you have a price you’re targeting and don’t have time to watch the markets. Instead of following the market, let the market come to you.

  • Simple, easy-to-use, free, and available 24/7 — modify or cancel anytime.
  • Set the number of bushels you want to sell at a target futures or basis value.
  • If the price hits, your sale automatically locks in.
Use if your market bias is:
  • Bull

PriceLock

Lock in a future reference price similar to a traditional No Basis Established (NBE) contract. Use this contract if you desire an easy and convenient way to lock in a futures reference price on your grain for up to 24 months out during times when traditional No Basis Established contracts might not be readily available.

  • Lock in a futures reference price past timing typically available with traditional No Basis Established contracts
  • No minimum volume or margin requirements.
  • Flexibility to establish the basis at any time prior to delivery subject to local policies.
Use when the market is:
  • Bear

Traditional contracts in your grain marketing plan.

Traditional contracts are a great option if you’re new to grain marketing and are just getting started adding diversification to your plan. Whether you’re bullish or bearish about the market and basis levels, these contracts can give you the certainty you’re looking for while allowing flexibility to capture upside potential. 

Ready to diversify your grain marketing plan?

Login to see your current contracts and how much grain you have committed. This can help you make informed decisions with the rest of your grain.

Start building your grain marketing plan.

Hard work and preparation are the keys to a prosperous farm. Make sure you have a grain marketing plan that works just as hard as you do.