Forward Contract - same as above, except delivery time may be for months in advance. Delayed Price - grain may be delivered across the scale or contracted. The price remains open, to be established at a later daye, and a charge is made against the grain until priced. Changes will vary based on time of year and basis levels. 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.