Types of Grain Contracts
Basis contractBasis is set; producer can deliver bushels during delivery period, but must set futures price prior to futures month on contract, or roll, to collect settlement. The producer will receive the futures price minus the previously agreed upon basis. The seller can receive a 75% advance of the current market price upon delivery.
Fees involved; bushels to be priced later or applied to a contract later. Please see applicable schedules for fees.
Allows the producer to price dedicated bushels daily based on parameters that he/she can individually set to meet his needs.
Futures and basis are set; producer can deliver bushels during delivery period and collect settlement upon delivery.
Futures (Hedge to Arrive) contract
Futures price is set; must set basis in order to deliver bushels to contract and collect settlement. Basis must be set prior to futures month. Fees are involved. Hedge-to-arrive contracts can be rolled forward to another futures contract month. Delivery basis, location, and period are all open to be set later.
JSA Select Pricing
Dedicated bushels enrolled in a marketing pool that is priced by professional traders at their discretion to set a futures price. Ursa Farmers Cooperative offers three pricing tools (summer, fall, winter) that all start February 1st of each growing season.
JSA Seasonal Pricing
Dedicated bushels enrolled in a marketing pool that utilizes an 8 week average price during the summer months to set a futures price.
Minimum Price contract
A floor price is established. Producer will buy an option and can receive an advance for the minimum price established. It must be transacted in 5,000 bushel increments.
Fees involved; bushels to be priced later or applied to a contract later. Producer maintains ownership of bushels.
OTC (Accumulator) contract
For those looking for a more risk/reward contract on a small percentage of his/her production that includes pricing bushels above today’s current market with the possibility of doubling up bushels.
Bushels are priced at cash closing price. Bushels may be transferred to this contract from storage or delayed price to lock in a price and hold settlement for a later date. Used when basis and futures are strong to lock in a cash price for a specified delivery location and period.
Tim Ellerbrock: 573-383-1967
Larry Spurgeon: 660-964-1987