Traditional Grain Contracts
With a wide variety of Cargill grain contracts, Cargill offers something for every grain producer
New contract feature: UnPricing allows you to UnPrice the futures price component of your grain contract. You can use it when you have a bullish market bias after already entering into a grain contract. You then re-establish a price before a pricing deadline. To learn more, contact your local Cargill representative
No Basis Established (NBE)
A No Basis Established (NBE) contract secures a futures price and delivery period without specifying the basis level. This contract is also known in the grain industry as a "Hedge To Arrive" (HTA) or a "Futures Only" contract.
An NBE contract allows you to lock in the futures price on the contract before setting the basis. When the entering into an NBE contract, you agree to deliver a specific quantity of grain based on a set futures price. Once the contract is signed, you set the basis on or prior to delivery of the grain.
The final cash price will be equal to the futures price adjusted for basis. One unique feature of Cargill's NBE contracts is that they offer opportunities for you to modify the contract with other grain marketing solutions. Minimum Price and Focal Point are each designed to work with NBE contracts as alternatives to fit your market bias and marketing needs.
A Basis contract secures the basis level and delivery period without specifying the futures level, allowing you to lock in a basis level that you find attractive even if you’re not ready to set the futures. The final cash price will be equal to the basis combined with the futures once you set them.
Basis contracts are a good choice when you think that basis levels could widen but you feel futures could improve. Basis contracts also guarantee you a delivery period to dump your grain when you want to secure space. Locking in basis may also be preferable to storage charges. You may also be able to get a payment advance against your basis contract before you set the final price.
When you’re ready to set the futures of your basis contract, in addition to the market price, you can also use one of Cargill’s other marketing alternatives to determine the futures.
Volatile as the markets are, that price you’d like to get is not out of the question. Put yourself in a position to profit if they get there with a Firm Offer. A Firm Offer from Cargill is a great choice for any grain marketing plan. It’s simple, free, can be modified or canceled at any time, and fills automatically—even during overnight trading. You can choose cash, futures- or basis-only. If the price hits, you’ve got a guaranteed sale—and incremental profits. If it doesn’t, you’re under no obligation.
A Firm Offer is a great way to add some discipline to your pricing and free you up from market-watching. Don’t miss out on solid sales because you hesitate during a price rally that may only last a few hours (and sometimes overnight). Instead of following the market, let the market come to you. Set your price with a Firm Offer.