Midland Marketing Coop

Grain

Whether you grow wheat, milo, corn, soybeans or even white wheat, the Midland Marketing Coop grain department is dedicated to helping you get a competitive price for your crop. In addition to cash sales, our experienced team offers several different contract options to help you sell your grain. We can also help you market on-farm grain.

With a combined storage capacity of nearly 13.99 million bushels, we have elevators located in Hays, Brownell, Hargrave, La Crosse, McCracken, Natoma, Palco, Plainville, Toulon, Yocemento and Zurich to meet the needs of area producers. Six of our locations are situated on rail lines to provide access to rail markets. We’ve added storage to several of these sites over the past few years and we continue to reinvest in our facilities to meet the growing needs of our members.

Whether you’re a longtime customer or just starting to work with us, our grain marketing team is always just a phone call away to answer your questions. And if you’ve never marketed your grain through Midland Marketing, contact us today to learn about the value we can bring to your operation.

Cash Bids

Contract Options

Midland Marketing offers a variety of ways for you to market your grain in addition to the cash sale. Click on the options below to learn how they can work for you. Please contact our office if you are looking for other contract options.

Cash Sale Contract		Forward Contract		Hedge-To-Arrive (HTA)		Basis Contract
Basis: The difference (or spread) between the local price and the Future price Used to price grain ‘across the scale’ or off storage (delayed price) Chicago Board of Trade (Future Price) Reasons to use a Cash Sale Cash Flow Needs Avoid storage (DP) charges – or stop them Think prices are going lower Reduce risk on portion of production Average out of sale prices over time Lock-in a Profitable return on production Transfer grain quality responsibility Future price + Basis = Cash price		Establish a specific price for the future delivery of grain At a specified delivery location For a specified delivery time frame For a specified amount of bushels With specific quality requirements Future price AND basis at BOTH fixed. Reasons to use a Forward Contract Lock-in Profitable return on production Think prices are going lower for the delivery window and want to lock in the price today Average out prices over time Reduce price risk on portion of production $3.50 + -$0.50 = $3.00		Only ‘lock in” the future price of the final cash price Basis is left ‘open’— to be set any time PRIOR to delivery of grain Delivery is required in the future, but the time frame can be altered Reasons to use an HTA Contact Offers a possible profitable return on production Think future prices are going lower Expect basis to improve prior to delivery Future Price + BasisX = X		Only ‘lock in” the basis portion of the final cash price Futures price is left ‘open’ — to be set any time PRIOR to delivery of grain Delivery is required at a specific time and to a specific location in the future Be aware of a carry market IF you try to roll it forward Reasons to use a Basis Contract Think about future prices are going UP The basis is historically strong, and you think it will weaken This CAN be rolled forward but BEWARE of a carry market! FuturesX + Basis = X

Cash Sale Contract

Basis: The difference (or spread) between the local price and the Future price

Used to price grain ‘across the scale’ or off storage (delayed price)

Chicago Board of Trade (Future Price)

Reasons to use a Cash Sale

Cash Flow Needs
Avoid storage (DP) charges – or stop them
Think prices are going lower
Reduce risk on portion of production
Average out of sale prices over time
Lock-in a Profitable return on production
Transfer grain quality responsibility

Future price + Basis = Cash price

Forward Contract

Establish a specific price for the future delivery of grain

At a specified delivery location
For a specified delivery time frame
For a specified amount of bushels
With specific quality requirements
Future price AND basis at BOTH fixed.

Reasons to use a Forward Contract

Lock-in Profitable return on production
Think prices are going lower for the delivery
window and want to lock in the price today
Average out prices over time
Reduce price risk on portion of production

$3.50 + -$0.50 = $3.00

Hedge-To-Arrive (HTA)

Only ‘lock in” the future price of the final cash price

Basis is left ‘open’— to be set any time PRIOR to delivery of grain

Delivery is required in the future, but the time frame can be altered

Reasons to use an HTA Contact

Offers a possible profitable return on production
Think future prices are going lower
Expect basis to improve prior to delivery

Future Price + BasisX = X

Basis Contract

Only ‘lock in” the basis portion of the final cash price

Futures price is left ‘open’ — to be set any time PRIOR to delivery of grain

Delivery is required at a specific time and to a specific location in the future

Be aware of a carry market IF you try to roll it forward

Reasons to use a Basis Contract