A futures contract which sets out a minimum price upon delivery of the underlying commodity. The price is defined in order to reduce the risk of fluctuations in the commodity's price.
Related information about minimum price contract:
- Minimum Price Contract
The minimum price contract is probably one of the more common hedge instruments used by producers. For this type of contract, the producer sells his grain for ...
- Minimum Price Contract Definition | Investopedia
A minimum price contract enables a seller to specify a minimum price for an agricultural commodity, such as grain, while still being able to take advantage of ...
- The Minimum Price Contract - Extension Agricultural Economics
1. The Minimum Price Contract. Risk Management. E-493. RM2-17.0. 10-08. * Associate Department Head and Extension Program Leader for Agricultural ...
- Minimum Price Contract Minimum/Floor Price = $4.65
Advantages and Disadvantages of a Minimum Price Contract. Advantages. Disadvantages. Locks in a minimum price but has upside price potential. Must pay a ...
- Farmer's Grain Marketing Decision Aid
Minimum Price Contract – allows the grain seller to lock in a minimum price and still have the opportunity to take advantage of higher prices that may occur later.
- Minimum Price Contract Definition & Example | InvestingAnswers
We explain the definition of Minimum Price Contract, provide a clear example of how it works and explain why it's an important concept in business, finance ...
- Minimum Price Contract: Definition from Answers.com
Minimum Price Contract A forward contract with a provision guaranteeing a minimum price at delivery of the underlying agricultural commodity.
- Minimum Price Contract - Baltz Feed Company
A Minimum Price Contract allows the seller the ability to set a specific minimum price for their grain, but allows them to participate in a price rally. In this case, the ...