No Basis Established (NBE)
A No Basis Established (NBE) contract secures a futures price and delivery period without specifying the basis level. This contract is also known in the grain industry as a "Hedge To Arrive" (HTA) or a "Futures Only" contract.
An NBE contract allows you to lock in the futures price on the contract before setting the basis. When the entering into an NBE contract, you agree to deliver a specific quantity of grain based on a set futures price. Once the contract is signed, you set the basis on or prior to delivery of the grain.
The final cash price will be equal to the futures price adjusted for basis. One unique feature of Cargill's NBE contracts is that they offer opportunities for you to modify the contract with other grain marketing solutions. Minimum Price, Focal Point and Market Ultra are each designed to work with NBE contracts as alternatives to fit your market bias and marketing needs.