B | |
| |
Basis | The difference between a spot or "cash" price and a specified futures price. |
| |
Bid | Willingness to buy at a stated price according to specified conditions. |
| |
Broker | A person paid a fee or commission for acting as an agent in making purchase or sales. |
| |
Buyer's Market | An abundance of goods available, permitting buyers to be selective and to buy at a lower price than had previously prevailed. |
| |
C | |
| |
CCC | The Commodity Credit Corporation, a wholly Government owned corporation established in l933 to assist American agriculture. |
| |
CFTC | The Commodity Futures Trading Commission, a regulatory agency set up to supervise futures trading on commodity exchanges. |
| |
CIF | Deleted periods between letters Cost, insurance, and freight. |
| |
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. |
| |
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. |
| |
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. |
| |
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. |
| |
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. |
| |
Consignment | A shipment sent to a commission merchant for him to sell. |
| |
Contract Price | Price and conditions of sale agreed upon when buyer and seller negotiate a transaction. |
| |
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. |
| |
D | |
| |
Deferred Delivery | (See forward contracting.) |
| |
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. |
| |
Discount | A schedule of deductions from the cash price for a commodity grading lower than the base grade. |
| |
E | (Back to Top) |
| |
Export Elevator | An elevator usually located on deep water and able to load export orders into ships. |
| |
Ex-Spout | Loaded into ship from discharge end of spout pertains to bulk commodities. |
| |
F | |
| |
FAS/fas | Deleted periods between letters Free alongside ship, does not include loading charges. |
| |
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. |
| |
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. |
| |
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. |
| |
H | |
| |
Handling Charges | Charges for loading and unloading a commodity. |
| |
Hedging | Purchase or sale of futures against the purchase or sale of the physical commodity as protection against price changes. |
| |
I | |
| |
In-transit Billing | Privilege of utilizing a portion of paid in rail freight upon continuance of transit, usually in the same general direction. |
| |
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. |
| |
M | |
| |
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. |
| |
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 | (Back to Top) |
| |
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. For more information on the organic |
| |
P | |
| |
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. |
| |
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. |
| |
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. |
| |
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. |
| |
S | |
| |
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. |
| |
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 | (Back to Top) |
| |
Tender | Delivery against a futures position. In export trade a request by a foreign country for offers to sell them grain. |
| |
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. |
| |
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. |
| |
W | |
| |
Warehouse Receipt | Ownership certificate for a specific commodity and grade of a commodity stored in a licensed warehouse, elevator, or storage tank. |
| |