Agronomy Grain Feed Energy Careers Locations GRAIN MARKETING PRO COOPERATIVE Popular Contracts Explained To learn more about any of these offerings or other grain marketing strategies, please reach out to a Pro Cooperative grain originator. Pro’s goal is to educate producers on different risk management strategies, along with providing market insight and recommendations. Basis This contract locks in basis for a given delivery period. The producer must set futures or roll by the identified delivery period. This gives the producer a window of time to take advantage of a market rally while locking in desirable basis levels. PROS Remove basis risk Participate in market rallies CONS Unable to take advantage of basis appreciation Susceptible to falling futures market HTA (Hedge To Arrive) An HTA (Hedge to Arrive) contract allows the producer to lock in futures. Basis must be established prior to delivery, which takes place prior to the first notice day of the chosen futures month. PROS Removes downside futures risk Locks in carry CONS Unable to participate in market rallies Susceptible to basis depreciation Extended Price An Extended Price contract allows the producer to sell cash grain at spot prices while maintaining upside (and downside) participation in the market. At the time the sale is made, a futures contract is bought in a chosen month. Upon liquidation, any gain or loss is applied to the cash contract. PROS Immediate cash payment Participate in market rallies CONS Downside risk in failing market Potential for margin calls Minimum Price A Minimum Price contract establishes a floor while retaining upside potential. The producer receives a cash price based on spot values, less the premium for the futures option. There is no downside risk, and the value added by the option (if any) at liquidation is applied to the contract. PROS Immediate cash payment Identified risk CONS Requires upfront investment to purchase option Value of option doesn’t move penny for penny with market Bonus Premium A Bonus Premium contract gives the producer a premium over current market values in exchange for a commitment for a like number of bushels. At the time of sale, a futures option is sold and that premium is applied to the contract. In exchange, the producer puts in an offer at the strike price of the option that cannot be cancelled until it expires. PROS Premium over current market CONS Risk of contracting an equal amount of bushels Accumulator Accumulator contracts offer a premium price in exchange for accepting quantity uncertainty. If prices rise, accumulators can price additional quantities. If prices fall, the contracts can stop pricing early. Pro offers several different accumulator pricing styles to customize to any grain marketing plan. CASH BIDS TEAM GRAIN RESOURCES Agronomy Seed Finance Precision Ag Team Soil Temp History Grain Cash Bids Harvest Hours Grain Resources Grain Marketing Team Feed Feed Energy Premium Fuel Auto Service Center Lubricants Dust Control Propane Team Careers Job Opportunities Beneftis Internships Apply Today Resources Announcements Customer Login Weather Locations Our History Board of Directors 17 3rd Ave NE Pocahontas, IA 50574 712.335.3060 Copyright © 2021. All market data is provided by Barchart Solutions. Futures: at least 10 minute delayed. Information is provided ‘as is’ and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.