Grain Contracting

This fact sheet lists the important factors producers should consider in selecting a particular marketing strategy, describes the typical marketing tools available to grain producers, and discusses the advantages and disadvantages of each option.

This publication provides a glossary of marketing and business terms as a reference for grain producers, or anyone involved in marketing or selling grain.

The local basis, defined as the cash price minus futures price, reflects important information about regional supply and demand for a commodity. Wheat basis estimates can be used by farmers, grain marketing firms, processors and feed buyers to forecast regional prices, make production or storage decisions, or assess different grain purchasing alternatives. This fact sheet gives monthly average estimates of wheat basis and cash prices for three regions in Maryland.