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) |