Stay in the market with the comfort of full price protection
Set a guaranteed price while remaining in the market with a Minimum Price Call to benefit from potential future price movements. Your guaranteed floor price is determined by subtracting the Minimum Price Investment fee and the basis from the futures price.
You can enhance your Guaranteed Floor Price by choosing to re-price your Minimum Price Call contract anytime before it expires to benefit from changes in the Minimum Price Value.
This contract is a great option for farmers who want to capture gains in a rising futures market while staying fully protected from downside risk.
When is a good time to use this contract?
- When you want to protect the current price but think it may increase further, or you aren’t sure if the market will increase but don’t want to miss out on a sudden rally
- At or after harvest, when you want an upfront payment upon delivery while remaining in the market to benefit from post-harvest price fluctuations
- When you are comfortable forward contracting a portion of your production
- Before harvest, when you want to eliminate downside price risk while staying in the market to capture potential price increases
What should I consider before choosing it?
- You can only re-price this contract once
- Only futures price movements will improve your contract’s value