What are Your Options?
You know that by the time your crop at the current price.
You Can Do Either of Two Things
* You can enter into a forward contract with a grain firm.
Often, their price is not as high as the market’s current trading level. (These firms are known as ‘commercials’.) They will quote you a price for your crop to be delivered to them at some point in the future, usually shortly after harvest. This contract is made between you and a grain processor or elevator. or,
* As an alternative, you could sell your crop on the futures market.
Provided your corn meets the proper exchange specifications, you can sell it in advance on the futures exchange. Prices there will be paid in your hometown area for your crop. The futures markets are organized exchanges or marketplaces where many individuals congregate for the purpose of buying and selling contracts in given markets for future delivery and/or for speculation.
Regardless of where the price you get will be guaranteed the price at which you sold your crop. You will not get your money until the crop is delivered to the buyer, but the price goes thereafter you will be locked in.
0 comments:
Post a Comment