Cash Sale
Execution:
- Deliver grain to your local FFGE elevator
- Sell grain at the current bid
- Receive payment
Strategy:
Use this tool when the cash price has met your objective. The futures and the basis levels may both be at favorable levels, or one may be significantly stronger than normal to compensate for the weaker factor.
Advantages:
- Easy to execute
- Receive payment immediately
- Eliminates all risk of price decrease
- No storage costs or risk
Disadvantages:
- Futures and basis are both locked in
- Inability to participate in a market rally
- Delivery is required
Fees: none