The Basics:	Producers can lock in a price for wheat at any time during the year, to be delivered during a future delivery period.
How it works	Producers are required to call the board between 10:45am and 2:00pm while the grain markets are open and receive a quote from a staff member.  If the price is agreeable a contract will be drawn up that will include: amount of wheat to be delivered, type of wheat to be delivered, price in Canadian dollars that the producer will be paid per tonne and per bushel, and the delivery dates.  A contract will be printed and sent to the producer.  The producer will have 72 hours to notify the board of any discrepancy in the information on the contract.  If the board is not notified of any discrepancies in the data, this document will be a legally binding contract between the board and the producer.  When the delivery period arrives the producer is responsible to deliver the wheat to a board appointed agent, terminal elevator or processor.  When delivery against a forward price contract is made to a board appointed agent, producers recieve the initial payment less license fees, handling and transportation costs directly from the elevator at the time of delivery.  Handling and transportation fees are negotiated between the producer and agent directly.  A second payment will be sent to producers for the balance of the contracted price from the board office.  When delivery is made to a terminal elevator or processor, a single payment for the full amount less license fees and applicable deductions will be sent to the producers from the board office.
Deadlines	Producer's can enter into this type of contract at any time prior to the wheat being delivered.
The Rules	Minimum contract size is 500 bushels or 13.608 tonnes.  Contracts must be in place before the board appointed agent, terminal elevator or processor submits the delivery ticket information to the board office.  Contracting hours are 10:45am to 2:00pm while markets are trading.  Contracts are not available for Feed Wheat or Pool F Wheat.
Other Details	Protein payments for Hard Red Spring and Hard Red winter  are over and above contract price and are paid directly to producers by local agents.  Resting Orders can be used to secure a Forward Contract.
Pros	Can capture attractive prices for future deliveries.  Can deliver to any board location.
Cons	May not produce the required amount and would have to buy wheat to replace it.
Choose this Marketing Alternative When:	You are satisfied with the forward contracting price offered.  You want to take advantage of an opportunity to lock in a profit on a portion of your crop.  You are certain of the delivery month you will be delivering your wheat.  To check Forward Contract offering prices click here.