Columbia Grain is here to help you cultivate greater returns. Our extensive expertise in contract execution is backed by over 40 years of experience, helping producers like you to navigate changing market conditions around the world.
Cash contracts are typically used when you want to eliminate both Futures and Basis price risk and you are making your desired rate of return against your cost of production. Cash contracting establishes both the Futures and the Basis levels all at once giving you your Gross Cash Sale, cash contracting can be done for both old crop and new crop* eliminating both futures and basis risk, on grain either stored at a Columbia Grain facility or at your farm. One aspect to take into consideration on selling grain stored at a Columbia Grain facility is the storage expense.
Let's say you delivered Corn to a Columbia Grain facility in January. Looking at our example bid sheet for corn below you would summarize that the best month to sell your corn for settlement is the month of March. In this example, March would give you the largest return once we factor in the storage expense given how the below cash bids are structured.
Cash Bids for: Corn
|Delivery Month||Cash Bid||+||Storage Cost (.04/mo.)||=||Gross Cash Price|
|Delivery Month||Cash Bid||+||Storage Cost||=||Gross Cash Price|
*New Crop cash contracting must have basis levels available for contracting time frame. This material should be construed as examples of potential uses of marketing tools offered through Columbia Grain and not as trading advice – marketing grain involves substantial risk; you should fully understand that risk before contracting your grain in any marketing tool provided through Columbia Grain – Columbia Grain reserves all rights under the NGFA. Please consult with your local CGI merchandiser on cost associated with this contracting option.