Market Alternatives - An Introduction...

If You Think...	Market's Going Higher	Market's Going Lower	Hope it's Going Higher But Afraid it's Going Lower	You Need Cash Flow
Sell at Harvest
Basis Contract
Delayed Price

 

	Advantages	Disadvantages
Sell at Harvest	Immediate cash.  No further risk.	No further opportunity.
Basis Contract	Cash advance.  Further price opportunity.	Price risk.
Delayed Price (DP)	Further price opportunity.	No cash advance.  DP charges.  Price risk.

 

Effective 8/31/01
		CORN
Deferred Pricing		$.125 flat plus $.02 3/4 per month, charged by the day.  Shrink to 15%.  No property taxes.
Basis Contract		No storage.  Shrink to 15%.  80% advancement upon delivery.
Open Storage		Shrink to 14%.  $.125 flat rate, then $.02 3/4 per month.  You pay property taxes on the grain.
		BEANS
		Same as corn, but shrink to 13%
	Contract Changes
	$.20 charge to change ownership
	Cancellation if not started by 10th of month following
	Freight may be added or deducted
	Inspection may be added or deducted
	Basis contracts must be priced by first delivery day
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