Contract of minimum price protection
The contract for Minimum Price Protecion is an effective tool to manage risk. It allows you to establish a floor price for your grain while allowing for increase in profit due to the market rising.
What is it?
You close your international price (CBOT) for your grains and take an insurance that covers that price (OPTION) If the market continue to go up after you’ve close your price, you’ll always have the possibility to let go of you insured price and close another price with the current market price.
Benefits
- You establish the lowest price for your grains with the possibility of increasing it.
- It protects you against market fluctuation.
- It gives you the benefit to increase with the market’s price.
- It gives you a good intelligent market tool.
To take into consideration
- The insurance cost is between 6% a 14% of the final price that we’ll pay at time of purchase.
- A thorough market analysis of the (CBOT) market by you or your St-Lawremce Grain representative will be necessary to benefit from the rise in market price.
When to use the minimum price protection?
You‘ll use this contract when you want to protect a minimum price with a possibility of an increased price.
Other contract types offered
Receivable producers
Note that all our producers are paid within 10 working days. You also have the option to be paid 80% for your grain in 48 hrs, with 2% below the agreed upon purchase price. This solution will allow you to have quick access to liquidity for your needs and avoid receivables being frozen for a period of time during harvest.
St- Lawrence Grain is a company accredited by the Control of Agriculture and Food Markets.
24H payment option
St-Lawrence Grain offers you the possibility to receive 80% of your receivables within 24 hours according to delivery.
