Livestock, Poultry and Grain Organic Terms

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 
  
BasisThe difference between a spot or "cash" price and a specified futures price.
  
BidWillingness to buy at a stated price according to specified conditions.
  
BrokerA person paid a fee or commission for acting as an agent in making purchase or sales.
  
C 
  
CIFDeleted periods between letters Cost, Insurance, and Freight.
  
Carrying ChargersThose costs incurred in warehousing the physical commodity, generally including interest, insurance, and storage. May include allowance for loss in quality, condition, or volume.
  
Cash PriceTerm 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 MerchantPerson who makes a trade in his own name and becomes liable as principal between himself and the other party to the trade.
  
ConsignmentA shipment sent to a commission merchant for him to sell.
  
Contract PricePrice and conditions of sale agreed upon when buyer and seller negotiate a transaction.
  
Country ElevatorGrain 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.)
  
DiscountA schedule of deductions from the cash price for a commodity grading lower than the base grade.
  
F

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FOBDeleted periods between letters Free On Board, price at place or origin not including transportation charges.
  
Foreign Material (FM) - DockageAnything other than the designated commodity which is present in a lot.
  
Forward ContractingA 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 PricePrice of a commodity bought or sold for a specified delivery period usually 30 days or more away.
  
H 
  
Handling ChargesCharges for loading and unloading a commodity.
  
I 
  
Inspection CertificateCertificate 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 IngredientsAt least 70 percent organic ingredients. The label must identify both organic and nonorganic ingredients.
  
N 
  
NominalA 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% OrganicAll 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% NaturalAll natural; natural: Not federally regulated.
  
OfferIndication of willingness to sell at a given price, same as "ask."
  
Open-End ContractA contract to purchase with a minimum cash payment, with final settlement at the end of the season.
  
OrganicRefers 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 CertificationVaries 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

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PDSDeleted periods between letters Price Date of Shipment, price of a contracted commodity to be determined on date of shipment.
  
Ports of ExportSites for collecting and loading commodities for export.
  
PremiumA 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 BidPrice willing to be paid for a commodity available for immediate delivery.
  
Spot PricePrice of a commodity available for immediate delivery.
  
Sub-terminalTakes delivery of grain from both growers and country elevators for storage and distribution. Usually has greater handling facilities than a country elevator.
  
T 
  
TerminalAn 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 PricePrice of a commodity, including freight and handling charges, delivered destination at a specified time.
  
W

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Warehouse ReceiptOwnership certificate for a specific commodity and grade of a commodity stored in a licensed warehouse, elevator, or storage tank.