No Price Established Contract
A No Price Established Contract (also known as a Delayed Pricing or Price Later Contract) allows you to move grain
without establishing any price. Charges vary with market conditions. It is important to note, that unlike storage, title to
the grain passes to the buyer upon delivery. You will not be able to use Price Later grain as collateral for government
loans or Loan Deficency Payments (LDP).
The service charges are based on market differentials (carries/inverses) and may or may not be less than storage
charges.
Customer Advantages
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Can make delivery while avoiding historically low (harvest) prices.
The emotionalism of pricing is separated from the physical handling of the grain.
Do not need on farm storage and price later may be cheaper than commercial storage.
Quality risk passes to buyer upon delivery.
On Free Price Later, it allows producer to move grain when they have time and then they can sell it in any
bushel amount when they decide.
Corn is shrunk to 15% moisture vs. 14% on storage and warehouse receipts.
Customer Disadvantages
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Subject to basis and CBOT price risk.
No payment until contract is priced.
This is not STORAGE! Title passes to buyer and you are unable to get a CCC loan or LDP once put into
Price Later.