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Revised Grain Contracts

May 12, 2020

To assist old crop grain marketing this summer, we have revised a few of our grain contracts. With the continued change in the market environment it may be best to act sooner rather than later. These revisions/offers are good until further notice.

1. Extended Price Contracts - We have re-opened our fall 2020 “EP” contracts. You can enroll new bushels, bushels from condo, and price later bushels onto this contract. You can receive a 70% cash advance with this contract. Take the basis risk out of the equation and have penny for penny upside and downside with the futures market.
  • Corn will be based on September 2020 futures & will expire August 21st, 2020.
  • Beans will be based on August 2020 futures & will expire on July 21st, 2020.
  • Due to less time in the program, we are reducing the fee from 7 cents to 3 cents.
  • Fall 2019 EP contracts are ahead of paying storage by roughly 49 cents, but still down from when they started.

2. Free Price Later- We have been and will continue to offer free storage on new bushels. Haul bushels from your farm today and set the price anytime from now until August 26th, 2020.

3. Basis Contract- We are offering forward delivery basis contracts again.
  • Futures will need to be set by first of the month of delivery period or when delivery begins, whichever comes first.

4. Minimum Price- We will continue to offer this contract at no fee. This is essentially selling cash and buying a call option (call options can run from 5-25 cents). You can receive a 90% advance and have a floor set it place.

5. Bonus Premium- Receive a 15-25 cent premium on corn and 20-40 cent premium on soybeans for a firm additional offer in the fall.


What to use if you are…

Bullish Basis & Futures:
• Free Price later

Bullish Futures:
• Extended Price
• Basis Contract
• Minimum Price

Bearish:
• Bonus Premium
• Cash Sale

Thank you for your business and please contact your local CFE location or originator today!
Ocheyedan Administration Office Number: 712-758-3636


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