The Hedge-to-Arrive (HTA) grain contract offers you the choice to lock in only the futures reference price portion of your cash contract for a specific delivery time and quantity. The basis can be set at a later date, but must be done prior to delivery. It’s one of many contract options that allow you to actively manage price risk.
Note that entering into a Hedge-to-Arrive (HTA) 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.
How it Works
Here’s how to put Hedge-to-Arrive to work for you:
- Working with your ADM representative, you lock in a futures price reference for a specific delivery period.
- You set your basis for the designated delivery period at a level you are satisfied with prior to delivery.
- You deliver your contracted grain and receive the cash price, which is your Futures Reference Price +/− Basis − Service Fee.
- Helps you actively manage your final grain price
- Helps diversify your marketing
- Lock in a favorable futures price reference even when the basis is not favorable
- Maintain flexibility in your marketing plan
Please contact me so we can have a conversation about this grain contract.