PriceProtector® Put

The PriceProtector Put Grain Marketing Alternative is a cash grain delivery contract that allows you to establish a basis contract and lock in a futures floor price. The contract protects you against a decline in futures prices while allowing you to remain in the market. The floor price is determined by the current basis price less the Total PriceProtector Fee, plus the PriceProtector reference price.

Benefits: The PriceProtector Put contract provides you with full futures market participation The PriceProtector Put contract provides price protection by establishing a floor price The PriceProtector contract can be applied to any quantity or delivery period

Risks: The PriceProtector Put contract can only be re-priced once Only future price movements will improve the contract value (the basis is locked in when the contract is established) The contract will only be re-priced at your recommendation

 

Disclaimer
This marketing alternative overview has been prepared to help you identify the marketing alternatives offered by Cargill, along with the advantages and disadvantages of each. Cargill has used its best efforts to provide you with this useful and helpful information. However, we cannot guarantee that this contract alternative will function in the same way in each and every situation, and information that may be accurate for one farmer may not necessarily prove to be accurate for another. Therefore, we do not make any warranty or guarantee as to the accuracy of any of the information as it is applied in a particular marketing strategy. Entering into any of the transactions outlined on this site will not result in your opening a futures account with Cargill or otherwise, nor will you obtain a futures position. The only futures position relative to any transaction, if one exists, will be held by Cargill. This and other contracts may employ the futures market as a grain pricing mechanism, but the contracts described are not, themselves, futures contracts.