A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
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. |
C | |
CIF | Deleted periods between letters Cost, Insurance, and Freight. |
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. |
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: Wheat, Barley, Oats June 1-May 31. Rice August 1-July 31. Corn, Sorghum, Soybeans October 1-September 30. |
D | |
Deferred Delivery | (See Forward Contracting.) |
Discount | A schedule of deductions from the cash price for a commodity grading lower than the base grade. |
F | |
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. |
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. |
M | |
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. |
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. Learn about Organic Certification. |
P | |
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. |
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 | |
Warehouse Receipt | Ownership certificate for a specific commodity and grade of a commodity stored in a licensed warehouse, elevator, or storage tank. |