Lock in a Floor and More
The Cargill NBE Plus contract is an enhancement to the traditional NBE (No Basis Established) contract. The NBE Plus contract has all the same features of the NBE contract, but gives you the potential to obtain a higher futures price if the market rallies.
When is it used?
The NBE Plus contract should be used when you want to lock in an attractive futures price, without setting basis, and want to retain the ability to participate in a rising market. You can recover all or a portion of your NBE Plus service fee if the market closes higher than the initial NBE Plus futures price on the applicable pricing date. If the futures closing price is higher on a pre-established pricing date, you will recoup all or part of the NBE service fee.
What are the advantages of an NBE Plus contract as compared to a standard NBE?
You lock in a minimum futures price for your grain with limited upside.
You have the ability to recover your NBE Plus service fee through a higher futures price.
Often, you will be able to contract further into the future than with the regular NBE contract.
Download: NBE Plus