Grain Marketing Options
The differential between the Chicago Board of Trade price and the cash market is established. An advance is paid when the contract is completely delivered upon. The Chicago price is established later.
Agricultural commodity futures and options contracts for hedging purposes may be traded through FCC Futures, Inc. Branch offices are currently in Botkins and South Charleston.
Immediate sale of grain for the price posted at time of delivery. The cash price will be the price at the time the farmer weighs his inbound load at the scale.
This is farmer owned storage. The grain can be hauled to different elevators and put into Condo.
Defer receiving payment; used often for tax benefits. The premium fluctuates with the current interest rates. Currently we are paying 2% premium per year.
Lets a farmer deliver grain now and price at a later date, at Trupointe’s current posted price. Typical DP period is 7 calendar days.
Farm Pick Up
Receive quotes for grain picked up from your farm storage bin.
Is a contract that allows a farmer to lift hedges and replace them before delivery time. Initial cost is 5¢/bu.
Lock-in price now, for delivery of grain later. Payment is made after contract is completely delivered upon.
Deposit of grain under a government program. A warehouse receipt is issued to the farmer at a charge of $25.00 per warehouse receipt.
Grain Bank (Feed Grain)
Is only for customers of the Trupointe’s feed department. Grain Bank is defined in Ohio Ag. Commodity Law as an agricultural commodity under a bailment agreement with the commodity normally returned to the bailer at a later date as an ingredient of a processed feed.
Grain Check Plus
Is a program offered by Trupointe under which the seller can choose to delay payment, but not income, for grain sold, in exchange for an interest payment on your sales proceeds. The producer has to sign over the check to Trupointe. Each producer will receive a 1099 each tax year.
A minimum price contract, with the cost of the option reduced by selling an out-of-the money call. The disadvantage is it limits upside potential.
Minimum Price Contract
Minimum Price is established, but allows the farmer to take advantage of higher prices. The cost of this contract is based on the CBOT’s options exchange.
Several options available to contract corn and soybeans. Speak with your Grain Marketing Specialist for more information.
Price Only Contract (Hedge-to-Arrive)
The CBOT futures price is established when the initial contract is written.
Customer delivers grain to elevator, retains title of grain, and pays storage charges for the period the grain is stored.
Trupointe offers a variety of ways to handle your grain. Below are the different ways your grain can be handled and a short explanation of each.
Target Contract (open order)
Sets the price a farmer wants to sell his/her grain at; when and if the price is reached the grain is sold.