|
The Basics:
|
Producers can select a price that they would like to contract wheat at and board staff will monitor the price and if it reaches the desired price we will write a contract at that price.
|
|
How it works
|
Producers would call the marketing department and place an order to contract wheat at a specified price. Information required is: type of wheat, amount of wheat, delivery period and strike price. A resting order application would be sent to the producer with the details of the order. If the price happened to reach the desired price a forward contract would be written at that price and all processes for a forward contract would be followed. If the price is not reached the order expires after 30 days and the producer has no commitment to deliver the wheat.
|
|
Deadlines
|
Resting Orders are valid for 30 days from the original call.
|
|
The Rules
|
Resting Orders will expire 30 days after they are taken if they have not been converted to forward contracts. They can be cancelled at any time as long as they have not been converted to a forward contract, if the board is notified by the producer.
|
|
Pros
|
Allows producers to sell at a desired price without having to monitor the daily prices.
|
|
Cons
|
Price could go higher than the resting order price.
|
|
Choose this Marketing Alternative When:
|
You do not have the time or resources to watch the market closely. You know what price you want to sell your wheat at.
|