Deferred pricing can be a helpful tool for grain producers but some brokers say with the current market, it comes with a warning.
Deferred or delayed pricing allows farmers to offload grain and price it later, but Sean O’Toole with CHS Hedging says interest rates are a major factor, and he is warning clients considering the practice. He says it is an expensive strategy right now and tells Brownfield Ag News a better plan would be buying call options.
He suggests using products like elevators and using a minimum price contract if they offer it.
