Title passes to warehouse at time of delivery. Payment is made after pricing is established. Target Price - is an offer from customer to sell stated quantity of grain at a given price and delivery time. Offers may be food for day, week, month or timetable desired by customer. A written form may be used to monitor offers which can be accepted in person or by phone.
Customer is phoned and contract written when objectives are met.
Basis Contract - the contract locks in the price relationship between the cash and futures market, bushels, and time of delivery. The final price is established when the futures price is locked in. Cash advances are available after completion of delivery with balance of payment after final price is established. Minimum Price - the contract locks in a guaranteed floor price and establishes bushels, delivery time, and base futures to be followed for final pricing. A charge is made for the guarantee.