Marketing Strategies

Contract Name	Description	Upside Potential	Increase From	Downside Risk	Decrease From	Cash at Delivery	Cost Structure
Forward Contract	Lock in a cash price before delivery	No	n/a	No	n/a	Yes (can defer payment)	No Cost
Cash Sale	Lock in a cash price at delivery	No	n/a	No	n/a	​Yes (can defer payment)	​No Cost
Minimum Price Contract	Lock in a cash price at delivery; buy time to stay in the market	Yes	Futures	No	n/a	​Yes (can defer payment)	Up front fee ​(fee based on length of time in market)
Basis Contract	Lock in basis at delivery; take increase or decrease in nearby futures	Yes	Futures	Yes	Futures	Yes (70% of value at delivery)	​No Cost
Extended Pricing Contract	Lock in basis at delivery; adjust to deferred futures month right away; take increase or decrease in deferred futures	​Yes	Futures	​Yes	Futures	​Yes (70% of value at delivery)	​No Cost
DP	Nothing fixed; pay for time to wait	​Yes	Cash price	​Yes	Cash price	No	Monthly ($0.14/bu minimum plus $0.001315/bu/day)
Storage	Nothing fixed, pay for time to wait (corn shrinks to 14% moisture)	​Yes	Cash price	​Yes	Cash price	No	​Monthly ($0.14/bu minimum plus $0.001315/bu/day)