Take the long view of the futures market
A MarketTracker Market Order locks in a futures price with a long maturity and establishes the basis closer to the delivery date or storage settlement period. This grain contract is a great option for farmers who want to capture an attractive futures price on new crop (crops they haven’t yet planted or are just beginning to seed).
When is a good time to use this contract?
- When you want to capture a high futures price and believe the market won’t reach that level later
- 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
- The basis level could widen, reducing your payout on what was once a very attractive futures price
If you’re interested in learning more about a MarketTracker Market Order, contact your Cargill Representative.