|DUMMER'S GRAIN SERVICE|
MONDAY 11/27-FRIDAY 12/1 8AM-5PM
Target Price Offers (TPO) This is an offer to sell your grain or buy grain from us at a firm price and designated delivery period. This offer is flexible and may be canceled prior to pricing. This contract takes the emotion out of pricing decisions and allows you to make market decisions in a business manner. There is no fee for this service.
Purchase Contract (PC) This contract is the basic contract for the purchase of grain. The farmer has a quantity of grain on hand and wishes to set a definite price and time period of delivery. There is no fee for this service.
Navigator Contract (NC) This contract allows you to sell your grain and still stay in the market by re-establishing futures price, then pricing out your futures at a later time. The resulting gain or loss in the futures market is your gain or loss. 3-cent fee for this contract. Paid 50% at time of delivery.
Deferred Payment (DP) This contract is similar to a Purchase Contract. There is a set bushel amount, price, and delivery period. The only difference is the contract will be paid out at a later date, often times after the first of the year.
Minimum Price Contract (MPC) This contract is one of the safest opportunities for a farmer to participate in the market movement to increase the price he (she) receives for the grain. The benefits are, all costs are defined, the producer receives a floor price (minimum) up front and can participate in any market rally with a defined risk (premium). In comparison to storage, shrink and handling costs, the premium cost might be a better value. This contract changes the ownership of the grain from farmer to elevator upon delivery of grain. Paid 100% at time of delivery.
Sales Contracts (SC) This is a firm offer to buy a predetermined price and for a predetermined delivery time and established number of bushels of grain. This contract can be written as a forward sales contract. There is no fee for this service.
Basis Contracts (BC) This contract allows you to lock in the basis but not the futures price. This contract changes ownership of the grain from farmer to elevator upon delivery. There is no fee for this service.
Hedge to Arrive (HTA) This contract allows you to lock in the futures price but not the basis. There is a 2-cent fee for this service. Basis must be set prior to delivery. One roll is allowed for a 2-cent fee.
If there is no established contract, the cash price will be paid on the day the grain was delivered.
The cash price is established at 1:30 PM upon market close.
- Wheats Extend Bounce through Wednesday
- Front month wheat futures were 1.7% to 4.4% higher on the day, led by the December HRW contract. Open interest in the Dec contracts is falling ahead of First Notice Day. At the close HRW futures were 16 ½ to 27 cents in the black. Front month spring wheat prices...
- Beans Neutral to Product Weakness
- Soybeans initially started the midweek session with weakness, but rallied back to close fractionally mixed. Jan futures stayed in a 15 cent range on the day. Soymeal futures were near their lows for the close with $2.10 to $6/ton losses. Soybean Oil prices were also weaker with 15 to 66...
- New Lows for Corn, Still Closes Higher on the Day
- The corn market closed mixed as Dec continues to lose open interest for deliveries. The more active contracts rallied a nickel from their lows and closed with 2 to 2 ½ cent gains. The March contract’s $4.70 low for the day was a new contract low. Trade estimates ahead of...
- Cotton Closed Neutrally Red
- After seeing a 110 point trading range from -30 to +80, cotton futures ended the midweek session with losses of 1 to 6 points. OI data from ICE suggests the December contract has just 93 active contracts, with ~789 deliveries so far. USDA reported 185,312 bales were classed on 11/28,...
- Midweek Gain for Lean Hogs
- Front month hog prices added another $1.07 to $1.60 to the upside on Wednesday. Dec futures still remain below the index, but only increased 5 cents on the day. The CME Lean Hog Index for 11/27 was $71.66, down by another 67 cents. USDA’s National Average Base Hog price was...
- Cattle Strength Carried through Wednesday
- Cattle closed the midweek session with another $0.25 to $1.05 gains across the front months. CME data showed net short covering, with net new calls active from the strong Tuesday session. USDA reported some light $175 cash trade in NE on Wednesday, down $1 from last week and matching the...