Basis Payment Contract

Similar to a Fixed Basis Contract for non-CWB grains, the CWB Basis Payment Contract allows you to fix a basis on your wheat, feed barley or durum against the related futures market with the intent of pricing it before expiry.

A Basis Payment Contract provides you with:

Improved Cash Flow – If your basis contract has been priced by delivery, it will provide you with a cash flow advantage by allowing you to receive payment in full within 10 days of delivery Enhanced Profits – Allows you the opportunity to increase your returns by potentially pricing at the high end of the market rather than receiving the final CWB Price Pooling System price Increased Time Flexibility – The Basis Payment Contract extends the period of time in which you can price your CWB grain outside of the CWB Price Pooling System, allowing you to apply a potentially higher futures price during the crop year

 

Disclaimer
This marketing alternative overview has been prepared to help you identify the marketing alternatives offered by the Canadian Wheat Board, along with Cargill's opinion of 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.