Basis Selector
Description:
The Basis Selector™ is a flexible tool that allows a grower to take advantage of a potential upside to the futures market while locking in a basis price. The grower can roll a basis contract over to the next futures month if desired.
When to Use a Basis Selector™ Contract
You know WHEN and HOW MUCH you want to deliver, you like the current basis price but you think it is likely that the commodity price will rise - use a Basis Selector™ contract to ensure that when the futures price meets your target you can execute a sale with your locked-in basis price.
Basis Selector™ Can Help You...
- Manage Grain Storage – Lock in space at the terminal for a particular delivery date (manages space issues and quality risk)
- Lock in a Basis Price – For as much of a crop as desired
- Manage Your Cash Flow – Ensure you have cash flow when needed
- Capitalize on a Rising Market – Lock in price once futures price is acceptable
Is A Basis Selector™ Contract Right for You?
Depending on market conditions and grower needs, Basis Selector™ contracts are appropriate for all growers. Richardson has planning tools that take the complexity out of the decision and help the grower decide if it is the right time to consider a contract. Your Richardson representative can give you easy to use tools and information to help make the right decision for your farm operation.
For more information on the Basis Selector™, please see your Richardson representative.