Cash Contracts

Cash contracts are typically used when you want to eliminate both Futures and Basis price risk and you are making your desired rate of return against your cost of production. Cash contracting establishes both the Futures and the Basis levels all at once giving you your Gross Cash Sale, cash contracting can be done for both old crop and new crop* eliminating both futures and basis risk, on grain either stored at a Columbia Grain facility or at your farm. One aspect to take into consideration on selling grain stored at a Columbia Grain facility is the storage expense.

*New Crop cash contracting must have basis levels available for contracting time frame. This material should be construed as examples of potential uses of marketing tools offered through Columbia Grain and not as trading advice – marketing grain involves substantial risk; you should fully understand that risk before contracting your grain in any marketing tool provided through Columbia Grain – Columbia Grain reserves all rights under the NGFA. Please consult with your local CGI merchandiser on cost associated with this contracting option.