|DUMMER'S GRAIN SERVICE
Target Price Offers (TPO) This is an offer to sell your grain or buy grain from us at a firm price and designated delivery period. This offer is flexible and may be canceled prior to pricing. This contract takes the emotion out of pricing decisions and allows you to make market decisions in a business manner. There is no fee for this service.
Purchase Contract (PC) This contract is the basic contract for the purchase of grain. The farmer has a quantity of grain on hand and wishes to set a definite price and time period of delivery. There is no fee for this service.
Navigator Contract (NC) This contract allows you to sell your grain and still stay in the market by re-establishing futures price, then pricing out your futures at a later time. The resulting gain or loss in the futures market is your gain or loss. 3-cent fee for this contract. Paid 50% at time of delivery.
Deferred Payment (DP) This contract is similar to a Purchase Contract. There is a set bushel amount, price, and delivery period. The only difference is the contract will be paid out at a later date, often times after the first of the year.
Minimum Price Contract (MPC) This contract is one of the safest opportunities for a farmer to participate in the market movement to increase the price he (she) receives for the grain. The benefits are, all costs are defined, the producer receives a floor price (minimum) up front and can participate in any market rally with a defined risk (premium). In comparison to storage, shrink and handling costs, the premium cost might be a better value. This contract changes the ownership of the grain from farmer to elevator upon delivery of grain. Paid 100% at time of delivery.
Sales Contracts (SC) This is a firm offer to buy a predetermined price and for a predetermined delivery time and established number of bushels of grain. This contract can be written as a forward sales contract. There is no fee for this service.
Basis Contracts (BC) This contract allows you to lock in the basis but not the futures price. This contract changes ownership of the grain from farmer to elevator upon delivery. There is no fee for this service.
Hedge to Arrive (HTA) This contract allows you to lock in the futures price but not the basis. There is a 2-cent fee for this service. Basis must be set prior to delivery. One roll is allowed for a 2-cent fee.
If there is no established contract, the cash price will be paid on the day the grain was delivered.
The cash price is established at 1:30 PM upon market close.
- Soybean Futures Hold for Tuesday Gains
- Beans start the week higher with 6 ¾ to 9 ¾ cent gains out of the 3-day weekend. March had been up by as much as 16 ¼ cents for the session high. Soymeal prices finished the first trade day of the week up by as much as $2.90/ton. Soy...
- Triple Digit Drop in Cotton Futures
- Cotton cooled off after the 3-day weekend with a triple digit pullback to start the week. March futures were 69 points off their lows for the close, but still down by 268 for the day. December cotton ended the session 110 points in the red and 821 points under the...
- Wheat Rallies Out of President’s Day Weekend
- Wheat futures began the week with 1.5% to 3.5% gains in the U.S. futures market. Chicago closed Tuesday up by as much as 22 cents, and tightened the Chi/KC spread to 3c for March. KC futures were 16 ¾ o 19 ½ cents higher at the closing bell on the...
- Corn Futures End 3c Higher on First Day Back
- The corn futures market faded from the session highs, but still closed 2 ¼ t 4 ¼ cents higher on out of the 3-day weekend. The March contract printed a 6 ¾ cent range on the day. Dalian Corn Prices were 14 to 17 yuan/MT (~6 cents/bu) weaker on Monday...
- Feeders Rally as Live Cattle Closed Mixed
- Front month feeder cattle futures ended the day near ~60 cents under the session highs with $0.35 to $2.60 gains. Fats were stronger in the deferred months with gains of as much as 57 cents, though were down by 22 to 37 cents in the front 2 contracts. Feb is...
- Tuesday Gain for Lean Hogs
- Hog futures ended the Tuesday session with 15 to 45 cent gains, though the April contract was $1.10 under the session high for the closing bell. USDA’s National Average Base Hog price increased another 82 cents on Tuesday afternoon to $70.25. The CME Lean Hog Index increased by 46 cents...