Fremar LLC

Mission Statement: TO ANTICIPATE, MEET OR EXCEED OUR PATRON'S EXPECTATIONS WHILE PROVIDING LOCAL PROFITABILITY.

Grain - Feed - Agronomy - Petroleum         605-648-3941 or Toll-Free: 800-658-3544, Fax: 605-648-3943
General Manager: Steve Domm                                                      Main Office Hours: Monday - Friday    7:30 AM - 5:00 PM
Main Office: 44608 - 273rd Street, Marion SD 57043                                                                             Closed Saturday & Sunday

	Contracts

SPOT SALE

FEATURES

* Immediate Shipment * Futures Market Portion Priced Immediately * Basis Priced Immediately * Payment Received Immediately

DEFINITION This spot sale is an alternative in which grain is sold for immediate shipment at current prices. This alternative is suitable is one believes grain prices (futures and/or basis) will continue to decline.

ADVANTAGES * Very simple approach to grain marketing.

* Provides prompt payment for grain.

* Allows one to capture favorable prices in markets that are trending lower.

* Eliminates storage and interest costs.

* Eliminates the risk of quality deterioration that is inherent in storing grain.

* Seller has the flexibility to sell grain into the best market available.

DISADVANTAGES

* Does not allow the seller the ability to benefit if prices improve in the future.

* Does not allow the seller to capture favorable carrying charges when available in the market.

* Does not allow the seller to benefit from basis appreciation in the market.

* Transportation availability may hinder the ability of a spot sale.

EXAMPLE

It is August 1st and FREMAR is posting a bid of $1.85 for corn. You bring in a 900 bushel load of corn. You instruct FREMAR to sell the corn for $1.85 and you go home with a check in your hand.