P & H has the options you need to meet your marketing goals.
simplest form of marketing.
agreement between yourself and P & H to pay a certain price for a certain quantity and quality of grain.
payment either immediate or can be deferred for tax planning.
agreement between yourself and P & H to pay a certain price for grain to be delivered at a future date.
useful to "lock-in" a price for new crop production.
useful if the price for grain is attractive to you now but delivery is not convenient or possible.
you are at risk to grow or store the grain and quality you contract.
price risk and gain is passed on.
agreement between yourself and P & H to determine the difference between the futures price and the net price you will receive.
useful if the basis level is attractive, however, you believe the futures level will increase.
while the basis component of your net price is determined the risk and gain of futures price movement is yours.
Trigger Pricing / Stop Pricing
agreement between you and P & H whereby upon your written instructions, P & H will price your stored grain if the street price rises or falls to levels set by you.
for example, if the current price for canola is $5.50/bus., you have a target price of $6.00 but do not want less than $5.25. You can leave instructions with your P & H representative to price all or portion of your stored grain accordingly.
provide a disciplined approach to grain marketing.
useful if you are busy harvesting, seeding or on holidays and cannot watch prices.