Southeastern Grain Company, LLC

(910) 592-3526

www.southeasterngrain.com

Grain Marketing Programs and Policies

SGC is committed to helping our farmer receive the best price for the grain they worked hard to produce. We have numerous risk management tools to help achieve optimal price.

Spot Price-The daily spot price is posted each morning at the local elevator and is calculated by using the local basis plus the CBOT futures at the close of the prior trading day. If you sell your grain using the spot price, prompt or deferred payment is available following delivery.

Market Price Contract -Market Price Contracts are also called forward contracts as they are put into place before the unloading of grain. There are numerous factors that go into a market price contract; delivery location, delivery period, local basis, and CBOT future price at the time of contract. If you feel the futures prices will fall and the basis may not hold, consider a market price contract as they eliminate downside price risks.
• Prompt or deferred payments are available following delivery.
• If a contract is overfilled, the balance of the loads will be applied to another available contract or priced at the daily spot price of the corresponding delivery date.

Un-Priced Basis Contract-The un-priced basis contract is put in place with the local basis, delivery location and delivery dates established but the CBOT futures price is locked in at a later date. Un-priced basis contracts is established before the delivery of grain and allows the producer to take advantage of CBOT futures rallies while protecting the risk against a potential weak harvest basis.
• If futures are un-priced by the last day of the month prior to the expiration month of the underlying future month, the option will be given to roll the contract onto the next futures month with a plus or minus carry or inverse cost
• Payments are made in full after contract has been priced

DP Contract-A DP Contract allows grain to be delivered when convenient with no set basis or CBOT Futures price. A DP contract is priced in the future at the sellers’ discretion within a set time period and may remain un-priced for 30 days post delivery date. After 30 days the following fees are incurred:
• Corn-7 cents per bushel per month
• Soybeans-12 cents per bushel per month
• Wheat-8 cents per bushel per month

Deferred Payment-Payment of delivered grain can be deferred from one crop year to the next. If at all possible, please relay this information at the time of contract or delivery.