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.
A spot price is determined by the flat cash price at the delivery location on the date of delivery. A customer may utilize this price if they don’t have contracts that apply.
Knockout is an event typically associated with Accumulator contracts and means that a market price event has caused a pricing formula to change that has been agreed upon in the contract terms.
Rolling is an industry term that indicates changing futures reference price to reflect a deferred futures month or changing basis to be valued versus a deferred futures month. A customer may roll for various reasons, including capturing a futures spread, or wanting more time to price their grain. Rolling is sensitive to market conditions and…
