With markets in flux, locking in a guaranteed floor price can provide needed confidence in your marketing plan. Cargill Minimum Price allows you to select a floor price of your choosing, maintain upside and retain the control to price out at anytime. There are a wide variety of additional strategies and combinations that can be utilized as part of a Minimum Price contract depending on your market outlook.
When is it used?
Minimum Price is a complement to any grain marketing plan at any time of year. It provides a floor price to insulate you from a volatile world – while maintaining upside participation.
What are the advantages of the Minimum Price contract?
Investments are deducted from the contract price, not paid up front
Trade at any time of the day regardless of the market being open or closed
Write the contract for any quantity
You establish the floor of your choice
You establish the pricing period of your choice
There are a variety of available strategies using put or call premiums in combination
You can convert a variety of contracts to Minimum Price contracts
You do not own an option, it is being used as a re-pricing mechanism
Download: Minimum Price