| B |
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| Basis |
The difference between a spot or "cash" price and a
specified futures price. |
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| Bid |
Willingness to buy at a stated price according to specified
conditions. |
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| Broker |
A person paid a fee or commission for acting as an agent in
making purchase or sales. |
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|
| C |
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| CIF |
Deleted periods between letters Cost, Insurance, and
Freight. |
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| Carrying Chargers |
Those costs incurred in warehousing the physical commodity,
generally including interest, insurance, and storage. May include allowance
for loss in quality, condition, or volume. |
| |
|
| Cash Price |
Term used to represent the economic value or worth of a
commodity. Often used to distinguish all other prices from futures trading
on an organized commodity futures market. |
| |
|
| Commission Merchant |
Person who makes a trade in his own name and becomes liable
as principal between himself and the other party to the trade. |
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| Consignment |
A shipment sent to a commission merchant for him to sell. |
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|
| Contract Price |
Price and conditions of sale agreed upon when buyer and
seller negotiate a transaction. |
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| Country Elevator |
Grain elevator located in a local farming community to which
farmers bring their grain for sale or storage. |
| |
|
| Crop Year (U.S.) |
Period from one harvest of a crop to the next harvest in the
following year. The period varies among commodities as follows: Wheat,
Barley, Oats June 1-May 31. Rice August 1-July 31. Corn, Sorghum, Soybeans
October 1-September 30. |
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| D |
|
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| Deferred Delivery |
(See Forward Contracting.) |
| |
|
| Discount |
A schedule of deductions from the cash price for a commodity
grading lower than the base grade. |
| |
|
| F |
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|
| FOB |
Deleted periods between letters Free On Board, price at
place or origin not including transportation charges. |
| |
|
| Foreign Material (FM) - Dockage |
Anything other than the designated commodity which is
present in a lot. |
| |
|
| Forward Contracting |
A transaction common in many industries, including commodity
merchandising, in which the buyer and seller agree upon delivery of a
specified quality and quantity of goods at a specified future date and price
or formula for establishing the price. |
| |
|
| Forward Price |
Price of a commodity bought or sold for a specified delivery
period usually 30 days or more away. |
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|
| H |
|
|
|
| Handling Charges |
Charges for loading and unloading a commodity. |
| |
|
| I |
|
|
|
| Inspection Certificate |
Certificate showing grade and other factors of quality
issued by inspector licensed under the U.S. Grain Standards Act, or a
certificate issued on agricultural commodities under the Agricultural
Marketing Act of l946. |
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|
| M |
|
|
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| Made with Organic Ingredients |
At least 70 percent organic ingredients. The label must
identify both organic and nonorganic ingredients. |
| |
|
| N |
|
|
|
| Nominal |
A nominal price quotation is reported in the absence of a
cash trade if the reporter is confident that the nominal price reflects
current market value conditions. |
| |
|
| O |
|
|
|
| 100% Organic |
All organic ingredients produced without synthetic
fertilizers, pesticides, herbicides or sewage sludge; food irradiation or
genetically modified organisms; no artificial growth hormones in livestock;
and farmers adhere to soil and water conservation methods. |
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|
| 100% Natural |
All natural; natural: Not federally regulated. |
| |
|
| Offer |
Indication of willingness to sell at a given price, same as
"ask." |
| |
|
| Open-End Contract |
A contract to purchase with a minimum cash payment, with
final settlement at the end of the season. |
| |
|
| Organic |
Refers to product that has been grown organically, according
to the Organic Foods Production Act (OFPA) of 1990. At least 95 percent
organic ingredients; remaining 5 percent can be approved nonorganic
ingredients, such as citric acid and baking powder, or approved nonorganic
agricultural ingredients when they are not available in organic form. |
| |
|
| Organic Certification |
Varies by certifying agency and by state. Typically, three
years without chemical pesticide and commercial fertilizer applications are
needed for certification. (Access:
National Organic Program) |
| |
|
| P |
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|
|
| PDS |
Deleted periods between letters Price Date of Shipment,
price of a contracted commodity to be determined on date of shipment. |
| |
|
| Ports of Export |
Sites for collecting and loading commodities for export. |
| |
|
| Premium |
A schedule of allowances over the cash price for a commodity
grading higher than the base grade. |
| |
|
| R |
|
|
|
| Reseller (Jobber) |
A person who takes ownership of a commodity and then resells
on the open market before physically taking delivery of that commodity. |
| |
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| S |
|
|
|
| Spot Bid |
Price willing to be paid for a commodity available for
immediate delivery. |
| |
|
| Spot Price |
Price of a commodity available for immediate delivery. |
| |
|
| Sub-terminal |
Takes delivery of grain from both growers and country
elevators for storage and distribution. Usually has greater handling
facilities than a country elevator. |
| |
|
| T |
|
|
|
| Terminal |
An elevator located at a major point of accumulation and
distribution in the movement of commodities. Usually has greater handling
facilities than sub-terminal. |
| |
|
| To-Arrive Price |
Price of a commodity, including freight and handling
charges, delivered destination at a specified time. |
| |
|
| W |
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|
|
| Warehouse Receipt |
Ownership certificate for a specific commodity and grade of
a commodity stored in a licensed warehouse, elevator, or storage tank. |
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