CASH/SPOT

Price grain at a specific time during the day or at the day's closing cash price.

FORWARD CONTRACT

Lock in a final cash price for delivery in 30 days or more.

STORAGE

Haul grain to a FS GRAIN facility and store grain for a fee. A flat fee is charged for storage to January 1st, then a monthly fee thereafter until final priced. 

Benefits:

+Storing grain allows for higher cash price opportunities down the road. 

+Can be priced in any bushel increment over time.

Risks:

-Cash prices could move lower.

DELAYED PRICED (DP)

Haul grain to a FS GRAIN facility and defer final pricing grain for a fee. FS GRAIN obtains ownership of the grain. 

Benefits:

+Placing grain on DP allows for higher cash price opportunities down the road. 

+Can be priced in any bushel increment over time. 

Risks:

-Cash prices could move lower. 

BASIS CONTRACT

Basis contracts allow you to haul grain in, lock basis and defer setting a final cash price to a later date. Basis contracts are similar to delayed price contracts in that FS GRAIN obtains ownership of the grain. 

Advantages:

+Allows time for higher futures prices down the road.

+Flexible depending on how long you would like to allow yourself to set your final cash price.

+If the contract is approaching expiration and you would like more time to price, the contract can be rolled to the next futures month for a fee plus the spread between your current futures month and new futures month. 

+Can be priced in increments or all at once. 

Risks:

-Futures prices could go lower.

-Rolling basis contracts can cause your basis to widen in a carry market with a fee each time the contract is rolled.

HEDGE-TO-ARRIVE (HTA) CONTRACT

HTA or Futures Only contracts allow you to lock in the futures price and set basis at a later time. Basis determining a destination and time of shipment. 

Advantages:

+Allows for flexible delivery destinations.

+Allows for basis levels to improve.

+Locks in futures price, eliminating risk of downward price movement.

Risks:

-Basis levels could worsen. 

-Futures prices could go higher.

MINIMUM PRICE CONTRACT

Minimum price contract allows you to lock in a price floor, while leaving unlimited upside potential through a certain date. This contract is structed by embedding the purchase a call or put within a contract with FS GRAIN. 

Benefits:

+By embedding the cost of the option within a contract with FS GRAIN, you are able to take advantage of these risk management strategies without the need to open a brokerage account.

+Limits downside price risk.

+Unlimited upside potential through a certain date.

+Maximum risk is the cost of the call or put.

+Generates cash flow.

Risks:

-The call or put could expire worthless.

-The market doesn't move high enough to break through the breakeven price on your contract.

MIN/MAX CONTRACT

A min/max contract allows the farmer to lock in a range, setting the minimum price but also limiting the upside potention. This contract is structured by selling cash grain and embedding the purchase and sale of a call within a contract with FS GRAIN. 

Advantages:

+The sale of the call offsets the purchase of a call.

Risks:

-Upside is limited in the event of a rally. 

-Calls could expire worthless.