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

DO NOTHING MARKETING ALTERNATIVE

FEATURES

* Delivery at a Later Date * Futures Market Portion priced at a Later Date * Basis Priced at a Later Date * Payment Received at a Later Date

DEFINITION

This marketing alternative is designed for the seller of grain who believes grain prices will rally. It simply requires the seller of grain to not sell until grain prices have improved.

ADVANTAGES

* Allows the seller to benefit if grain prices improve.

* Easy to understand.

DISADVANTAGES

* The seller may incur storage costs while waiting for grain prices to improve.

* The seller may be exposed to the risk of quality deterioration that is inherent in storing grain.

* The seller may be exposed to adverse financial considerations if the market declines at a later date.

* The storing of grain may not be prudent money management as monies are tied up in grain inventories. These monies might otherwise be used to earn interest or to service existing debt.

* In many instances it is too convenient in that is encourages the seller to take a random approach to the marketing of his product.

EXAMPLE It is October 1st and FREMAR posts a cash bid of $4.10 for soybeans. You think prices are going higher so you set up the auger to your bin and put the beans in the bin.