It’s been nearly two years since ADM launched Faces of Food, an ongoing series of authentic stories featuring and celebrating the voices of producers from across the country. Since August 2022, each Faces of Food episode has featured a different farm family, their unique operation, and the steps they’ve taken to sustain and improve it…
Viewers of Episode 1 of Faces of Food Season 3 watched as Illinois corn and soybean producer Doug Martin emphasized the importance of “trying different things” to improve soil health and grain quality. “We’re trying to make that soil healthier by introducing more beneficial fungi, bacteria, things like that,” he says. In addition to using…
Basis represents the difference between futures and cash prices. Each ADM facility determines its own basis. It reflects what grain is worth in certain areas by assessing local supply and demand factors, market delivery locations and freight costs associated with moving grain to those facilities. Delivery locations change constantly. They can be export facilities, local…
DP is an acronym for “Deferred or Delayed Pricing.” It can also be referred to as “PL/Price Later.” When utilizing a DP contract, ownership of the grain transfers to the elevator. This contract allows the customer to deliver the grain to ADM under the agreement that the grain will be priced at a later date.…
This price is reflected on ADM contracts to determine the final cash price once the basis has also been established. The futures reference price relates directly to exchange futures prices for that specific commodity. Futures reference prices may be established in many ways depending on the contract type.
Cash is the cash price established when you sell grain to ADM and what you will receive for each bushel/ton/etc. before any possible fees, taxes, or discounts.
All our ADM contract programs have different service fees associated with the specific pricing formula they offer. These contracts may not cost anything, some may offer a premium and others can cost more. Associated costs depend on certain market conditions and details of the contract. We take pride in explaining each contract thoroughly to make…
DP is an acronym for “Deferred or Delayed Pricing.” It can also be referred to as “PL/Price Later.” When utilizing a DP contract, ownership of the grain transfers to the elevator. This contract allows the customer to deliver the grain to ADM under the agreement that the grain will be priced at a later date.…
