Five Tips for a Better 2020 Crop Year
January 16, 2020
It’s hard to believe we’ve turned the page on 2019. Maybe you’re reviewing what went well (or what you could improve upon) and are making plans to step up... Read More
If you feel there is a potential for future prices to improve, but basis levels may get worse, a Basis grain contract allows you to lock in only the basis portion of a cash contract for a specific delivery period. With the basis set, you can wait until a later date to set the futures reference pricing portion of your cash contract. Basis contracts may also allow you to receive a payment advance on an estimated portion of the contract value for the grain that has been delivered.
Note that entering into a Basis contract does not result in the seller opening a futures or options account or having a futures or options position. Any futures or options position taken by a buyer is for the benefit of the buyer only and shall be in the buyer’s name. Futures and/or options may be employed as a grain pricing mechanism. This contract is not a futures or options contract or a commodity pool agreement.
ADM products and services vary by location.
Please contact me so we can have a conversation about this grain contract.
From early crop-year planning, ‘til your money’s in the bank, we pledge to be the best grain marketing strategists you can find. Ask for ideas anytime.
We’re specialists in driving down nutrient costs through forward pricing and direct purchasing. Let us help you build better margins into your bottom line.