This option provides the producer with immediate cash flow. All terms and conditions for delivery and payment are listed on a standard contract and may not be altered. There will be no binding verbal undertaking outside of the written contract. The buyer pays the producer only the initial payment for the relevant pool account, and does not distinguish between this wheat and wheat delivered into the pool account. If delivered to a country elevator, the cost of handling and transportation will be deducted.
Contracts are available for all varieties and classes of wheat.
Protein premiums are paid for HRW and HRS wheat over and above the contract price. Grade No. 3 and feed grade discounts are listed in the contract. It is similar to the cash price option, except that a contract is signed for delivery at some date in the future, rather than immediately. All other features are identical to the cash pricing option. This option allows producers to lock in a price, but still have market gain potential, in the same manner that producers of non-Board grains can utilize put options.