Basis Pricing Contract
A basis pricing contract allows you to protect the local price and let the international market fluctuate.
What is it?
The basis pricing contract method allows you to get the best possible price for your grain. The local basis and international price (CBOT) are rarely high at the same time. Timing is the key to this type of contract. You decide the number of tons you like to engage in for this contract and apply the basis on this volume with a pre-determined date of delivery. You are obliged to close your futures before the delivery date.
Benefits
- Allows you to beat the average market price.
- You can combine a basis and a storage contract that will liberate storage space and ensure you get a better long term price for your grain.
To take into consideration
The futures could lower in value.
When to use the sales contract?
- The basis pricing contract is used when the local basis is good and the futures are weak.
- Use this sales contract when you know the basis you want for your grain and when you do not want to be subject to international 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.
