Min/Max PriceMin/Max Price Contract • October 30th, 2021
The Min/Max Price contract is the same as a Minimum Price contract except in order to offset the cost of the floor, you set a price ceiling. This allows you to take advantage of smaller upward movements in FUTURES prices. You can choose where to set your floor and ceiling by choosing a call option strike price for the floor and one for the ceiling. You may offset this position at any time prior to the strike date. This contract is best applied to old crop bushels stored in the elevator. This contract can only be applied in 5,000 bushels increments.
A contract to sell grain that establishes a minimum price while offering the flexibility to capture limited upside opportunity if the market improves.Min-Max Price Contract • May 16th, 2019
The producer agrees to sell a specific quantity of grain for a specific delivery period at a given price. The minimum price is determined by subtracting the cost of a range of upside participation from the contracted price. Upon delivery the producer will receive the pre-established minimum price, unless the market is within the participation range at delivery. The producer may receive some or all of the market improvement within the participation range.
