How it Works
The Price Daily contract prices an equal portion of your contracted bushels each day during the pricing period at the closing futures reference price. Your final futures reference price is equal to the average daily closing price.
You can add a floor price to protect your downside. Should the market dip below that floor at close, your grain will be priced at your floor price that day. You can also add a ceiling price to lower your service costs. In this case, on any day the market closes above your ceiling, your grain will be priced at your ceiling prices.
Taking advantage of a Price Daily contract is easy:
- You choose the total number of bushels you want to price, the time period in which pricing for a specific commodity will occur and a delivery period.
- You decide if you would like to add a floor or ceiling price component to the daily pricing activity.
- When the pricing period concludes, the final futures reference price will be established on your contract.
- Prior to delivery, you set the basis.
- You deliver your contracted grain and receive a final cash price, which is the Final Futures Reference Price +/− Basis − Service Fee.