|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.
- Wheat Rallies for Thursday Gains
- After trading mixed through the midday portion, the afternoon wheat market rallied into the close. Chicago futures closed UNCH to 6 ½ cents higher. The May SRW contract was at a net 17 ¾ cent loss for the month’s move. KC futures closed Thursday 3 ¾ to 7 ¼ cents...
- Hogs Closed Higher on Thursday
- The bonus day for the month of Feb finished with the lean hog board 27 to 67 cents stronger. April futures were a net $1.80 higher for the month. USDA’s National Average Base Hog price was $1.02 stronger to $75.49 for Thursday. The CME Lean Hog Index was $79.91 up...
- Cattle Continued Fading into Month’s End
- The live cattle market ended the last trade day of the month with 60 to 95 cent losses. Despite that, April was still up by a net $4.65 for the month’s move. Feb cattle expired at $184 flat. Feeder cattle were down by triple digits on the last trade day...
- Cotton Drops Triple Digits to Close Feb
- The bonus day for the month of Feb finished with Cotton prices 38 to 195 points weaker. Old crop again led the way with the larger move, pushing back below the $1 mark past the in-delivery March contracts. Dec ended the month with a net 231 point gain. USDA’s FAS...
- Thursday Corn Futures Close Firmer
- Feb ended with UNCH to 2 ½ cent gains across the front month corn futures. May prices were down by a net 29 cents for the month’s move. Dec corn finished 16 ¾ cents in the red for the month. The average Dec corn price was $4.66, compared to $5.91...
- Beans Fade as Products Firm through Thursday
- The front month soybean futures market was down by 1 ½ to 5 ¾ cents across the front months on the day. The May contract finished the session 92 cents weaker for the month of Feb. Nov futures were also 66 ½ cents lower on the month. The average Nov...