| 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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| Buyer's Market |
An abundance of goods available, permitting buyers to be selective and to buy at a lower price than had previously prevailed. |
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| C |
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| CCC |
The Commodity Credit Corporation, a wholly Government owned corporation established in l933 to assist American agriculture. |
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| CFTC |
The Commodity Futures Trading Commission, a regulatory agency set up to supervise futures trading on commodity exchanges. |
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| CIF |
Deleted periods between letters Cost, insurance, and freight. |
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| Carrying Charges |
Those costs incurred in warehousing the physical commodity, generally including interest, insurance, and storage. May include allowance for loss in quality, condition, or volume. |
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| 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. |
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| Close (cash) |
At some cash grain trading centers, a time to end cash grain trading is established by the exchange members. However, the market reporter should use discretion in determining when fair and open trading has ceased. |
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| Close (futures) |
Period at the end of the futures market trading session during which all trade is declared as having been executed at or during the last seconds of trading. |
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| 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. |
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| 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. |
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| D |
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| Deferred Delivery |
(See forward contracting.) |
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| Demurrage |
The penalty assessed against a shipper or receiver for failure to utilize or release a railroad car, barge, or ship within a specified period of time. |
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| Discount |
A schedule of deductions from the cash price for a commodity grading lower than the base grade. |
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| E |
(Back to Top) |
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| Export Elevator |
An elevator usually located on deep water and able to load export orders into ships. |
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| Ex-Spout |
Loaded into ship from discharge end of spout pertains to bulk commodities. |
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| F |
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| FAS/fas |
Deleted periods between letters Free alongside ship, does not include loading charges. |
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| FOB |
Deleted periods between letters Free on board, price at place or origin not including transportation charges. |
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| Foreign Material (FM)- Dockage |
Anything other than the designated commodity which is present in a lot. |
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| 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. |
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| Forward Price |
Price of a commodity bought or sold for a specified delivery period usually 30 days or more away. |
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| Free Supply |
Quantity of a commodity available for commercial sale; does not include Government held stocks. Also, may exclude stocks held by processors for their own use. |
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| Futures Contract |
Agreement to buy and receive or to sell and deliver a commodity at a future date under conditions specified by the trading rules of the particular Board of Trade or Exchange. |
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| H |
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| Handling Charges |
Charges for loading and unloading a commodity. |
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| Hedging |
Purchase or sale of futures against the purchase or sale of the physical commodity as protection against price changes. |
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| I |
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| In-transit Billing |
Privilege of utilizing a portion of paid in rail freight upon continuance of transit, usually in the same general direction. |
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| 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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| Margin (futures) |
Amount deposited by buyers and sellers of futures to insure performance on contract commitments; serves as a performance bond rather than a down payment. |
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| N |
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| 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. |
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| O |
(Back to Top) |
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| Offer |
Indication of willingness to sell at a given price, same as "ask." |
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| Open-End Contract |
A contract to purchase with a minimum cash payment, with final settlement at the end of the season. |
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| Organic |
Refers to product that has been grown organically, according to the Organic Foods Production Act (OFPA) of 1990. For more information on the organic |
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| P |
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| Parity |
A theoretically equal relationship between commodity prices and all other prices; in farm program legislation, parity is defined in such a manner that the purchasing power of a unit of the commodity is maintained at the level prevailing during an earlier historical base period. |
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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. |
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| Ports of Export |
Sites for collecting and loading commodities for export. |
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| Premium |
A schedule of allowances over the cash price for a commodity grading higher than the base grade. |
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| Price Protection |
Price discount subtracted from the bid; usually in effect during volatile market activity. During times when price protection occurs, bids should include the protection discounts, and a statement should be included in the report reflecting the range of protection discounts taken for each commodity. |
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| R |
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| 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 |
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| Seller's Market |
Market condition in which there is a scarcity of goods available, enabling sellers to obtain better conditions of sale or higher prices. |
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| Spot Bid |
Price willing to be paid for a commodity available for immediate delivery. |
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| Spot Price |
Price of a commodity available for immediate delivery. |
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| 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. |
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| T |
(Back to Top) |
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| Tender |
Delivery against a futures position. In export trade a request by a foreign country for offers to sell them grain. |
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| 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. |
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| To-Arrive Price |
Price of a commodity, including freight and handling charges, delivered destination at a specified time. |
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| Track Country Station |
Usually involves a price designation; indicates the cost of a given commodity loaded in rail car and ready for shipment from an interior location. |
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| 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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