Sell when the markets are strong and deliver later
Lock in a guaranteed price for your grain today and deliver in the future. This grain contract is more flexible than a cash sale and eliminates downside price risk. It also gives you the option of deferring payment to a new tax year. Deferred Delivery is a great option for growers who are comfortable making pricing decisions well ahead of delivery, as well as growers who don't mind managing production and quality risk.
When is a good time to use this contract?
- When the deferred delivery price reaches your known contracting objectives before delivery
- When you think prices have reached their peak before delivery
- When you want to reserve space for future delivery
- When you want to synchronize delivery and cash flow requirements
What should I consider before choosing it?
- The deferred price may not cover the cost of storing your grain
- After you lock in your price, there’s always a chance the market price will increase further