A Target Contract allows you to select the price you would like to achieve for a certain quantity of Corn, Wheat and Soybeans, without having to monitor the ups and downs of the market.
Determine your desired price and create a Target Contract. A Target Contract can be created by visiting or calling Les Young Farms Ltd. Les Young Farms Ltd. will enter your target into their electronic system where it stays until your target is hit. We will advise you that a purchase contract has been issued for your grain.
ADVANTAGE OF TAGRET CONTRACTS
- You set a target price that meets your business needs
- You don’t have to watch the markets
- Keeps your marketing options open
- Your grain is offered to the market 17 hours a day
- You can change or cancel the target price prior to triggering at no cost
WHAT SHOULD YOU KNOW?
- You have no price protection if prices go down
- The price may be triggered in a rising market
- Once the Target Contract has been triggered, a cash contract is created obligating the seller to deliver/sell grain to Les Young Farms Ltd.
- Your target price could be triggered throughout the day or night while the market is trading.
WHEN IS IT USED?
Use a target price contract when you know the price you require to achieve your marketing objectives. A Target Contract is particularly useful when you are unable to monitor the markets.