Grain Marketing Tool Box

by Lori Wyman

by Lori Wyman

Your Grain Marketing Tool Box has several different marketing tools and each one has a specific purpose.  There are two tools you can use today.  The first tool is the Price Later Contract.  This is a good contract to use when you have time to haul grain, but don’t necessarily like today’s price for cash corn or soybeans.  What is the advantage?  You can haul corn when it works for you and sell it at a later date during our trading hours of 8 a.m to 1:55 p.m. The spring weather outlook is cool and wet, which may turn into a rally in the futures.  Haul your grain now when you have time, then when you are sitting in the tractor planting all you have to do is make one phone call to sell your grain.  It is already in the elevator so no more hauling in July and running the sweep auger when it is 100 degrees and you are trying to irrigate.

MP900314349With our current Price Later Program, no service charges will be applied if settled on or before October 31, 2013.  The title will pass upon delivery to UFC and corn will be shrunk to 15% moisture, instead of 14% for storage corn.  If the corn or soybeans are not priced by November 1, 2013 a 5 cent per bushel service fee plus 4 ½ cents/month fee will be assessed until the grain is sold.

The second tool you can use is the Hedge to Arrive Contract (HTA).  This contract is used to lock in the futures price today and basis will be set at a later date.  For example, this contract would be used when you want to haul corn in July but think the basis could be better.  You would sell the HTA contract today (lock in the futures price) and have the option to look at several different delivery markets when you set the basis later.

Both the Price Later and the HTA contracts are a good, solid, delivery contract that gives you flexibility when marketing your grain.  Contact your UFC origination team, Lori Wyman-402-362-8449, Maxine Goelz-402-527-5511, Rusty Morehead-402-362-8458, Josh Gartner-402-362-8459, Amanda Lemburg-402-362-8421 or Tyler Kester-402-362-8426.  We appreciate your business!