The customer sets a target price that if hit will result in a fixed price contract or as pricing for delayed price bushels. If the target is hit the contract is written or the delayed price bushels are settled.

An agreement that establishes a fixed price, Chicago Board of Trade plus local basis, for a specified amount of grain to be delivered to a named location during an agreed upon delivery period.

At the time of contracting, the futures price is established, and final price is then determined when the basis is set. The basis must be set prior to time of delivery or before the contract expiration date.

This contract establishes a guaranteed base price protecting you against lower prices but permits participation if the market rallies. The final price will be the minimum price plus any value the option provides if the market rallies prior to the expiration of the option.

At the time of contracting, the basis is established, and final price is then determined when the board price is set. Board price must be set prior to expiration date in the contract. Basis contracts may be rolled forward to another board contract month, at the spread between the futures months, plus a fee for a contract change.

This contract allows a producer to move grain to a location without establishing any price. Charges vary with market conditions.

It is important to note that, unlike storage, title to the grain passes to the buyer upon delivery. Producers will not be able to use price later grain as collateral for government loans or Loan Deficiency Payments (LDP). Service charges are based on market differentials (carries/inverses) and may or may not be less than storage charges.