Paterson Grain, LLC is proud to offer the following contracts.* For more information about each of these contracting options please contact us.
DEFERRED DELIVERY GRAIN PURCHASE CONTRACT
Our Deferred Delivery Grain Purchase Contract has the advantage of allowing the grower to lock in the price of a specified quantity of grain on the date the contract is entered into, for delivery at a future date. This allows growers the ability to lock in Paterson Grain, LLC’s daily purchase price at a time favorable to them, allowing the grower to focus on crop production and storage rather than market fluctuations. The prices are based on market conditions as well as Paterson’s sales offering for a particular period.
HEDGE-TO-ARRIVE GRAIN PURCHASE CONTRACT
Our Hedge-to-Arrive Grain Purchase Contract allows the grower the ability to set the futures level on the contract date, locking in a particular futures month price for deferred delivery of a specified quantity of grain. The basis level is locked in at a later date of the grower’s choosing. The grower benefits by locking in the futures price without the risk of timely margin calls that could otherwise arise were the grower to hedge their own position in the market.
BASIS ONLY GRAIN PURCHASE CONTRACT
Our Basis Only Grain Purchase Contract gives the grower the ability to lock in the basis, (difference between the cash price and the futures market, which takes into account all the costs associated with delivery of the grain, such as elevation, storage, interest and transportation) for deferred delivery of a specified quantity of grain. With this contract, a grower can obtain a favorable basis level while waiting to lock in the final price (futures price plus basis) at a later date, which could even be after delivery of the grain.
NET TARGET PRICE AGREEMENT
Under the terms of a Net Target Price Agreement, Paterson Grain, LLC will lock in a specified quantity of grain on a Deferred Delivery Grain Purchase Contract at the “net target price” for a selected time period. If the target price is reached within the selected time period, then the grower commits to delivering the grain as set out in the Target Price Agreement. If the target price is not reached within the selected period, the grower has no commitment to deliver the grain; however, the grower may renew at the same target, or a different target, for the same, or a different selected period. Net Target prices can be placed for any delivery period for futures only or a flat price.
*All contracts are subject to the terms and conditions of the contract document.