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…
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.
Accumulation level is a specific futures reference price that is part of an Accumulator contract formula for pricing the futures portion of a grain contract.
A ceiling is simply a top or maximum price that is part of the contract pricing formula and limits upward price movement on grain delivered or contracted for future delivery. Ceilings are flexible and the fees associated with locking in a ceiling depends upon market conditions.
Carry is a term meant to indicate that the market is willing to pay you more later for grain than it will today. Carry is composed of both futures and basis components. Typically, we have carry in markets that are well supplied with high inventories.
