About Red Wing Grain

This contract averages the futures price every day from March to June for old crop (July) or new crop (Dec). See chart for results of past history. This program has been used for over 20 years with solid results using discipline, diversity, consistency, and benchmarking. Whether it’s unsold bushels that need to be priced next summer or the crop you expect to grow in the following year, the Average Contract is a proven way to diversify your marketing plan, ensure a disciplined approach to selling grain.

This may be used if you want to guarantee a minimum price while preserving your opportunity to benefit from future price gains. While keeping you in the market through futures options, the Minimum Price Contract allows you to price your delivered grain and receive full payment (minus the premium cost of the option). While limiting price risk, the cost of an option can be a cheaper alternative to paying high storage fees plus interest. There is no downside risk beyond option premium costs. Premium costs will vary depending on futures month and strike price. The Min-Max Contract (buying and selling a call) is similar to the Minimum Price Contract it reduces your cost by limiting your potential price gain.

A No Basis Established (NBE) contract secures a futures price and delivery period without specifying the basis level. This contract is also known in the grain industry as a “Hedge To Arrive” (HTA) or a “Futures Only” contract. An NBE contract allows you to lock in the futures price on the contract before setting the basis. When the entering into an NBE contract, you agree to deliver a specific quantity of grain based on a set futures price. You will need to set the basis on or prior to delivery of the grain.

A Basis contract secures the basis level and delivery period without specifying the futures level, allowing you to lock in a basis level that you find attractive even if you’re not ready to set the futures. The final cash price will be equal to the basis combined with the futures once you set them. If you want to sell cash for nearby or harvest delivery, and anticipate positive price movement in the deferred months to come (July futures), a Basis contract may be of interest to you.  ou may benefit from improved futures levels and request a cash advance after delivery with no interest on the money advanced. You remain subject to the risk of lower future price with no price floor. Your delivery does not establish a price and you must price while the market is open.

This allows you to extend your marketing after you deliver and possibly take advantage of a better daily cash price later on during the year. You must price your grain during the open market hours. The cash price is the current day’s price, not deferred delivery price. Fees and availability can vary from year to year on this contract. Call us in the Fall for availability and the current Delayed Pricing Programs. Fees can vary year to year on this contract.

• All grain contracts must be signed and returned within 10 days of receipt.
• All grain contracts must be delivered in full.
• All Defer Pay Grain must be notified prior to settlement, and signed within 7 days. You will need to sign a Defer Pay Contract prior to your settlement or your check will print automatically.
• Grain checks are written on Mondays and Thursdays.
• Grain checks will only be written to the name on the scale ticket. (Check scale tickets for correct name after each load)
• When you receive a check, it also prints a summary of current contracts of that commodity on the bottom of the Purchase Settlement.
• Any liens on the crop that are filed on the current (CNS) Central Notification System will be listed on the checks.
• As always, double check the probe and scale digital display for correct name and commodity – be sure it matches the printed scale ticket.
• Please NOTE:  Keep your trucks tarped. Please do not untarp your truck in the coal yard. Also, tarp your truck before you leave. You may get pulled over and ticketed if you don’t follow these procedures!
• The new bin/bunker site has a tag reader but it is different from the downtown system. You will need a separate tag for unloading at this site.
• Frequent Mail Delays on checks– If you would like to request to pick up your check, just let us know!