Premier Cooperative, Inc.

GPCI CONTRACTS AVAILABLE TO PATRONS
BASIS	The difference between a Chicago Board of Trade futures price and a cash price. (Not profit)
CONTRACT	A genuine mutual agreement between two or more competent parties to do or not to do something that is lawful for a sufficient consideration; it is an agreement which, when violated, will support the award of damage to the injured party.
SPOT CONTRACT	Price at the close of market day used in pricing grain delivered with no contract.
FORWARD CONTRACT	A contract for a specific time shipment and price in the future.
BASIS CONTRACT	A contract for which the basis has been fixed, or predetermined, in the contract. Normally a delivery date is also established at this time.
HTA CONTRACT	A contract for which the futures has been fixed for a established time of delivery of grain and the basis to be set any time before delivery.
DEFERRED PAYMENT	A contract to pay a specified price at a specified time for grain that has already been delivered and priced. (Is used by the farmer to defer income.)
PRICE LATER	Grain delivered with a price to be established by a set time. (Sometimes for a set charge.)
WAREHOUSE RECEIPT	Negotiable document, issued in Certificate form by the warehouseman in receipt for grain received and can be used as collateral or security.
OPEN STORAGE	Grain stored under informal agreement with a storage facility or local grain elevator.
MINIMUM PRICE CONTRACT	A relatively new cash grain marketing practice which has developed since the introduction of option trading. It is essentially a forward contract with a guaranteed minimum price per bushel. To do this, the elevator normally buys a call and lowers the cash price by the cost of the call.
OFFER	A binding contract between the buyer and seller for a specified amount of grain if a set price is reached for a specific shipment period, by a set date, unless cancelled.