Lock in the futures today, establish the basis later
This grain contract gives you a chance to take advantage of possible improvements in the basis level, reserve space for future delivery and avoid downside risk in futures prices. Futures First is a great solution for growers who want to store grain on their farm while locking in the carry in the futures market. It’s also a good option for growers who track local basis levels and want to improve their pricing potential.
When is a good time to use this contract?
- When you want to lock in an attractive futures price but feel the basis level will improve prior to delivery
- When you want to reserve space for future delivery
What should I consider before choosing it?
- There’s always a chance the futures price will increase further after you lock in your price
- This contract is subject to basis risk, as the basis may decline prior to the pricing deadline