Immediate Delivery Contract
Enables the Grower to lock in an attractive street price and
take up to 30 days to deliver the contracted tonnes. The contract
is specific to the commodity, quality, number of tonnes, and price
and delivery location along with other terms of the contract.
This type of contract is low risk as the futures price and basis
levels are fixed.
Benefits are:
- Guaranteed Price
- Delivery Convenience
- Reduced risk
For Grower information please contact the Paterson Elevator Manager
nearest to you:
Deferred Delivery Contract
This contract allows the Grower to lock in the price of their
grain for delivery in the future. The commodity, price, quality,
tonnes, delivery location and delivery period are stated along
with other terms of the contract. Used as a risk management tool,
the grower gets to choose their price, delivery month and payment
timing that works best for them. The prices are based upon market
conditions as well as Paterson Grain's sales program in effect
for each month.
Benefits are:
- Grower Management of Cash Flow
- Guaranteed Price=Low Risk
- Delivery Convenience
For Grower information please contact the Paterson Elevator Manager
nearest to you:
Basis Contract
Gives the Grower an ability to lock in the basis, (discount to
the futures market), which is made up of all the costs associated
with delivery of the commodity to the end-user. For instance;
cost of elevation, storage, interest and transportation. Therefore
a Grower can obtain a favorable basis level while waiting for
the futures market to rise, even after the delivery of the grain.
The Grower has until the last business day of the month prior
to the delivery month to lock in the futures price. This contract
will have all the terms of the deferred delivery contract; the
difference being it is yet to be priced.
Benefits are:
- Guaranteed Basis Level
- Ability to Deliver before Locking In Futures Price
For Grower information please contact the Paterson Elevator Manager
nearest to you:
Profit Plus
Provides a minimum price for a contracted number of tonnes (must
be in 20 Metric Tonne increments) of a specific commodity and
quality within a certain delivery period. This allows the Grower
the ability to get paid the minimum price of the contract at the
time of delivery while still having the ability to capture any
gains on the futures market with no downside risk.
Due to the nature of the program, there is a cost for this price
protection and rally opportunity which is deducted from the minimum
price; this cost depends on market conditions. The Grower has
a specific period in which to capture any gains in the market.
Benefits are:
- Risk Management - Guaranteed Minimum Price - Immediate Cash
- Grower Management of Cash Flow
- Risk is Limited to Cost of Price Protection
For Grower information please contact the Paterson Elevator Manager
nearest to you:
Target Price
Growers can set a target price for immediate delivery to Paterson
Grain for 30 days based on a specific commodity, quality, tonnes
and delivery location. Paterson Grain will lock in the specified
grain on an Immediate Delivery Contract at the "target price"
if the market is reached within the 30 days. This allows the Grower
to lock in his price without having to watch the market. If the
target price is not reached within the thirty days the Grower
has no commitment to deliver the grain, however the Grower may
renew at the same target or a different target for another thirty
days.
Benefits are:
- Set Price to Meet Needs
- No Need to Watch Market
- Obligation only if Target Price is met
- No Cost to the Grower
Production Contract
Upon credit approval, Paterson Grain agrees to extend to the
Grower, crop inputs to a set maximum value with a reduced interest
rate until the due date in exchange for the delivery of the grain
grown on the specified acres. Credit limits will vary on the number
of acres contracted. There is no fixed price or basis, giving
the Grower the ability to lock a price or basis in at anytime
during the crop year. In the event the previously mentioned production
is inadequate to cover the crop inputs provided, the Grower is
liable for the monetary difference.
Benefits are:
- Crop Inputs now on Credit Approval against Future Crop Delivery
- Cash Flow Management Tool
For Grower information please contact the Paterson Elevator Manager
nearest to you:
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