Why choose a Priced Contract? 

The advantages to a Priced Contract are the quantity and price of grain is fixed and has no further price risk. The quality risk is passed to the buyer upon delivery, and there are funds available after the contract has been completed.  

If a Priced Contract is chosen, pricing flexibility and delivery are eliminated and there is no chance for further price increases.

*Offerings subject to change without notice. The above contracting tool involves market risks and may not be appropriate for all producers.

What is an HTA? 

This is a formula price contract. The formula is: basis + board of trade price. At the time of contracting, the board price is established, and final price is then determined when the basis is set. The basis must be set prior to time of delivery or before the contract expiration date.

The HTA contract takes advantage of high futures levels, leaving opportunity for basis to improve. Futures downside price risk is eliminated, and the producer has no margin calls or exchange fees.

When an HTA contract is chosen the producer is open to basis-level widening, cannot take advantage of futures rallies and cannot trade in and out of HTA contracts as with futures contracts. The delivery of the contract is mandatory and payment is not received until basis is set and the grain is delivered.

*Offerings subject to change without notice. The above contracting tool involves market risks and may not be appropriate for all producers.

What is Delayed Pricing? 

This contract allows a producer to move grain to a Sunrise Cooperative location without establishing any price. Charges vary with market conditions.

It is important to note that, unlike storage, title to the grain passes to the buyer upon delivery. Producers will not be able to use price later grain as collateral for government loans or Loan Deficiency Payments (LDP). Service charges are based on market differentials (carries/inverses) and may or may not be less than storage charges.

A Delayed Pricing contract can make delivery while avoiding historically low (harvest) prices. The emotionalism of pricing is separated from the physical handling of the grain, the producer does not need on-farm storage, and delayed pricing may be cheaper than commercial storage. Quality risk passes to buyer upon delivery.

Delayed Pricing contracts are subject to basis and CBOT price risk. There is no payment until contract is priced and this is not storage. The title passes to the buyer and you are unable to get a CCC loan or LDP once put into price later.

*Offerings subject to change without notice. The above contracting tool involves market risks and may not be appropriate for all producers.

Structured Grain Contract 

Structured grain contracts are cash contracts designed to meet the producer’s specific pricing needs. These flexible contracts are customizable and are tailored to fit the producer’s risk tolerance and price biases.
 
Structured grain contracts do involve some added risk such as double-up and knock-out. The producer’s risk is reflected in the price requested.
 

*Offerings subject to change without notice. The above contracting tool involves market risks and may not be appropriate for all producers.

Basis Fixed Contract 

This is a formula price contract. The formula to determine price is: basis + board of trade price. At the time of contracting, the basis is established, and final price is then determined when the board price is set. Board price must be set prior to expiration date in the contract. BF contracts may be rolled forward to another board contract month, at the spread between the futures months, plus a fee for a contract change.

The advantages to a Basis Fixed contract are the downside basis risk is eliminated, the producer may take advantage of future CBOT rallies and may avoid a weak (harvest) basis or low flat price. The producer can receive an advance of 70% of contract value (ex. $2.00 cash price: advance $1.40 per bu.). The product quality risk passes to buyer, and the producer avoids storage or price later charges. There are no minimum bushel requirements.
 
If this contract is chosen, the future basis improvements cannot be realized. You remain subject to the risk of changes in the CBOT futures prices. This contract also requires knowledge of local historical basis.
 
There is risk in Sunrise Cooperative asking for additional equity in case cash values fall below advancement levels.
 

*Offerings subject to change without notice. The above contracting tool involves market risks and may not be appropriate for all producers.

What does a Minimum Priced Contract do? 

• Set futures by entering into an HTA or Priced Contract
• Buy a call option at or out-of-the-money
• Minimum Price is the futures price minus the premium paid and basis

• To initiate a minimum price contract, it costs $0.02/bu for corn and $0.04/bu for soybeans.
• The new rolling feature that allows you to improve your minimum price if the market rallies costs $0.01/bu for each roll. The amount of times you can roll your strike price is not limited.
• If the option is in-the-money and you elect to exercise the option to improve your final price $0.02/bu will be deducted from the option value. 

*Offerings subject to change without notice. The above contracting tool involves market risks and may not be appropriate for all producers.

Price Target Contract 

Price targets can be reached if you are not able to monitor the markets minute by minute. This contract takes advantage of short-lived day rallies, if your offer is working in the Sunrise target system. If you have a price goal in mind, this contract puts it in writing and gives you something to watch and monitor. Any price amount and bushel quantity can be offered and offers can be used to price cash, storage or new-crop delivery grain. Offer to sell may be cancelled by seller anytime, providing notice has been received by buyer prior to offer being filled.

If a price target contact is chosen the grain will be priced at an offer, and if the market rallies past the set offer, additional gains will not be realized. Putting offers to sell at even dollar amounts can sometimes be costly. An example is an offer to sell $4.00 corn, and the price tops at $3.99; then the market falls to $3.50. Fails to “pull the trigger.”

*Offerings subject to change without notice. The above contracting tool involves market risks and may not be appropriate for all producers.

A Sunrise Grain Solutions Advisor will provide a customized bid based on different markets, freight rates, and delivery times. Sunrise personnel will pick your grain up off the farm and move it to the best market at your desired speed. We will dispatch the proper amount of trucks needed to maximize your loading capacity and save you time - just fill the trucks when they show up.