Cash Contract - A cash contract will be used if corn is sold for immediate (spot) delivery. Price Later corn when sold would be considered a cash contract.
Forward Cash Contracts - Forward cash contracts are contracts that allow a producer to deliver the grain during a specified time frame. These contracts are set-up in thirty day delivery windows, usually month-by-month. Delivery is required within the terms of the contract.
Basis Contracts - Seller establishes the basis, but does not set the futures level. These contracts are set-up for thirty day delivery windows. The futures level has to be set by the end of the delivery window.
Put-Cash Contracts - E Energy Adams purchases a put option for the account of the producer. Producer pays for the option at the time of the executed trade. Producer agrees to price the grain at a later date specified within the contract. At the time of the pricing, put option is sold and any proceeds will be added to the cash price received.
Minimum Price Contracts - E Energy Adams purchases a call option for the account of the producer after the cash corn is sold. The cost of the call option will need to be paid at the time of the purchase of the call option. Any proceeds from the selling of the call option will be paid to the producer.
Min-Max Contracts - E Energy Adams purchases one call option and sells another call option after cash corn is sold. Producer will have to pay for the call option spread at the time of the trade. E Energy Adams will margin the sold call. Any proceeds from the lifting of the call option spread will be for the account of the producer.
Price Later Contracts - Price Later contracts allow grain that is not priced to be delivered and be priced at a later date. Price later corn will have to be priced in the spot market. Title passes to E Energy Adams, LLC at the time of delivery. Price Later charges may change.
Deferred Payments Contracts - Producer would like to price grain, but would not like the income until a later date.