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

If you’re interested in learning more about a Futures First grain contract, download an info sheet or contact your Cargill Representative.