There's no one solution for every farmer who works with us. That's why we have a variety of contract options. Don't see one that works for you? Let's talk.
Limit Order
A Limit Order allows you to offer to sell at a specified price at a specified delivery period. The offer is subject to review and approval by the buyer. If accepted, the contract will be created at the specified price for the specified delivery period.
Features:
Any unaccepted offer can be withdrawn at any time by the seller.
Considerations:
Buyer is not obligated to accept any offer.
Premium Charge:
May be applicable.
Flat Price
A Flat Price Contract allows the seller to set the future and basis prices at the same time the contract is created. A farmer would use this type of contract if they want to lock in the current future and basis prices.
Premium Charge:
May be applicable.
Hedge to Arrive
A Hedge to Arrive Contract allows the seller to lock in the futures price at the time of contract creation. This provides the option to price basis at the then-current basis bid price at any time before the pre-selected delivery date (contingent upon buyer confirmation).
Features:
This type of contract protects against downside futures price risk.
If the basis bid increases, seller has the option to lock in the basis price (contingent upon buyer confirmation).
Considerations:
The seller retains basis pricing risk until the final flat price is established upon or before delivery (contingent upon buyer confirmation).
Any futures price increase after contract creation is forfeited by seller.
This type of contract does not guarantee a favorable price at delivery.
Premium Charge:
May be applicable.
Basis Only
A Basis Only (Seller's Option) Contract allows the seller to lock the basis price, and provides the option to price futures at any time before the pre-selected delivery date. If the farmer does not price futures before the day of delivery, the contact will be priced at the settlement price on the day of delivery.
Features: This type of contract protects against downside basis risk.
If the futures market rallies, the seller has the option to lock in the futures price (contingent upon buyer confirmation).
Considerations:
The seller retains futures pricing risk until the final flat price is established upon or before delivery (contingent upon buyer confirmation).
Any basis increase after contract creation is forfeited by seller.
This type of contract does not guarantee a favorable price at delivery.
Premium Charge:
May be applicable.
FlexPrice™ Program
Farmers should have access to sophisticated risk management tools to build a custom grain marketing strategy, which is why Tyson LGS has developed The FlexPrice™ Program for farmers. These flexible tools, used at your discretion, give you the ability to set your price and manage your exposure when you sell your grain to Tyson LGS.
Spot Price
The seller agrees to the current spot futures price off the Chicago Board of Trade and the elevator's posted basis at the moment the truck comes across the scale. No fees.
Delayed Pricing (DP)
The seller can deliver grain at any time, but can wait to price the grain in the future until the final delayed pricing date, upon agreement with the merchandiser. Fees apply.