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Columbia Grain is here to help you cultivate greater returns. Our extensive expertise in contract execution is backed by over 40 years of experience, helping producers like you to navigate changing market conditions around the world.

“CA$H +” (Plus) Contract

Mechanics:

  • Sell cash grain / simultaneously sell a call option at your desired strike price. Add the premium from selling a call option to your current cash sale.
  • We can use new crop options against old crop cash sales.
  • Selling a call makes the seller obligated to sell futures at the specific strike price if it is exercised.
  • If the call option is exercised the Seller will have an additional delivery obligation sold to us in a Hedge-to-Arrive pricing status at the specified strike price (with the traditional HTA fee to apply).
  • Cash + contracts need to be done in 5,000 bushels increments.

Example:

Today is October 4, 2024.

  • Cash bid for SWW delivered in October is $6.00
  • Grower can sell 5,000 bushels of cash SWW @ $6.00 and simultaneously the grower sells a Chicago Wheat September 2025 American Call with a strike price of $7.00 and received a premium of 35 cents. The call premium of 35 cents for selling the call option is added to the cash contract value making the cash contract $6.35 *minus costings*
  • If the market moves higher and the call is exercised the grower will have an additional delivery obligation of 5,000 bushels WU5 HTA @ $7.00 (the strike price originally sold) (with basis to be set no later than 8/22/25 traditional HTA costings to apply on the new HTA contract).
  • If the markets move lower and the call is not exercised there is not new crop HTA obligation at $7.00

 

  Cash + Example:
Today’s Nearby Cash Price 10/4/2024
SWW Nearby Cash Price		 Cash Contract
$6.00
Current WU5 Futures Trading at $6.30 Sell 7.00 WU5 Call $0.35
Cash Price 6.35
5/5/2025
Market goes up example: WU5 Current Price $8.00
IF the 7.00 WU5 Call gets exercised Grower will be assigned
a WU5 HTA @ $7.00
8/22/2025
Market goes down example: WU5 Current Price $5.00
7.00 WU5 Call expires and not exercised No additional HTA Obligation

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.