Boost Your Bottom Line
Looking for a way to boost prices? Need to establish a marketing plan? Cargill Premium Offer does both. It pays you a premium for your grain above and beyond the cash price. The premium is paid in exchange for a firm offer to sell additional grain for deferred delivery at an established price.
When is it used?
Premium Offer should be considered anytime you want to enhance your grain price while at the same time establish a firm offer to sell additional grain for deferred delivery. Offers can be made when selling new crop, or old. The offer will enforce a scale-up marketing discipline to take advantage of potential market rallies.
What are the advantages of the Premium Offer contract?
Allows you to capture a premium on grain
You choose the firm offer price and pricing date for the firm offer
You have no obligation to deliver the grain on firm offer if futures close below the firm offer price on the pricing date
You may set the basis for the firm offer on the day of writing the contract or any date prior to the firm offer pricing date (local policies may vary)
Setting a firm offer can be a critical piece of a marketing plan
Can be tied to a wide variety of grain sale contracts
You keep the premium regardless of the firm offer outcome
Download: Premium Offer