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Providing for your Future

Contracts, Policy, Discounts

Policies:

  • Frontier Cooperative buys grain during the hours of 8:30 am to 1:10 pm CST.

  • Sales Orders are accepted, offers are worked in both daytime and overnight trading sessions.

  • Grain on Hold or Open Store applies to the Spot Bid.

  • Open Store Grain cannot be put on DP.

  • Open Store Grain cannot be applied to a Too Arrive Contract (includes HTA and/or Basis).

  • Grain Bids are subject to change without notice.

  • Frontier Cooperative no longer buys oats or milo.

 

Frontier Cooperative offers the essential contracting tools today’s farmer needs to meet their marketing needs.

Contract Glossary:

  • Cash Grain Sale – the farmer picks the bushel amount, time of delivery, and delivery location.  Price is based on the local basis and CBOT futures price for the nearby or future delivery time frame at the time the contract is wrote.  If grain is stored at a Frontier location, a Cash Grain Sale is subject to the nearby or spot bid at that location.  Settlement on Cash Grain Sales can be deferred upon farmers’ request.

  • Offer Contract – the farmer picks the bushel amount, time of delivery, delivery location, and desired price.  Offer Contracts may also be used on bushels stored at a Frontier location as well.  Offers can be set for any amount of time.  Offer Contracts are subject to basis fluctuations.  The desired cash price must be reached in order for the offer to fill.  Offer Contracts can be filled during the CBOT day or overnight trade.

  • Basis Contract – the farmer picks the bushel amount, time of delivery, and delivery location.  Basis level is set based on the time of delivery and delivery location chosen.  CBOT futures must be priced on the basis contract before the specified CBOT delivery month begins. (Ex: A contract based on December futures should be priced by the last business day of November)

  • Minimum Price Contract – the farmer picks the bushel amount and crop year, while potentially leaving time of delivery, delivery location, and local basis open to flexibility.  Minimum Price contracts create a price floor while allowing for upside if the market moves higher.  For more information and to find your local Frontier Cooperative team member, see our Market Solutions tab.

  • Seasonal Price Contract - the farmer picks the bushel amount, time of delivery, and delivery location.  An equal percentage of the new crop futures are priced every Wednesday at 1:15 pm in May, June and July.  The final price is established at the end of July once the pricing period has ended.  Seasonal price contracts can be converted into cash contracts or into hedge to arrive contracts (HTA’s).  Contracts must be signed up in increments of 5000 bushels.  Ask your Frontier Grain Marketing Consultant for more details.

  • Hedge to Arrive (HTA) Contract – the farmer picks the bushel amount, the futures month.  The farmer can either choose a futures target, or establish futures at the market.  Basis, delivery time and delivery location can be established later, but must be established before delivery.  HTA’s must be priced or rolled before the specified CBOT delivery month begins. (Ex: A contract based on December futures must be priced or rolled by the last business day of November)  Contracts must be signed up in increments of 5000 bushels.  HTA contracts include a contract fee.  Ask your Frontier Grain Marketing Consultant for more details.

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Futures: at least 10 minute delayed. Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.

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