Hedge-to-Arrive (HTA)

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:

  1. Working with your ADM representative, you lock in a futures price reference for a specific delivery period.
  2. You set your basis for the designated delivery period at a level you are satisfied with prior to delivery.
  3. You deliver your contracted grain and receive the cash price, which is your Futures Reference Price +/− Basis − Service Fee.

 

Benefits

  • 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

 

Let's talk.

Please contact me so we can have a conversation about this grain contract.

Email Sign Up - Grain Contracts Single

Contact Information

*Required Fields

Tooltip Option 1 text
Tooltip Option 3 text
Tooltip Option 3 text
Tooltip Option 2 text