Corn Bids

A year-round corn market for area farmers.

Christensen Farms buys corn directly from farmers to produce feed exclusively for the pigs we own. With four feed mills across the Midwest, we provide a year-round corn market for area crop farmers. We currently operate feed mills in Sleepy Eye, Minnesota; Forest City, Iowa; Atkinson, Nebraska; and, Pierre, South Dakota.

  Click here for Corn Bids

For information regarding prices, contracts and services, access the link above or contact our corn purchasing staff via phone or e-mail.

CORN INFORMATION

Hours (Extended Open Hours; Monday to Friday):

  • Sleepy Eye, MN
    • 6:30am-5:00pm
  • Forest City, IA
    • 6:30am-5:00pm
  • Atkinson, NE
    • 6:00am-2:30pm
  • Pierre, SD
    • 6:00am-2:30pm

Receiving:
FAST UNLOADING – Our unloading capacity is approximately 250 bushels per minute or a semi-load in about 4 minutes. (Applicable at the Sleepy Eye and Forest City Feed Mills)

CONTRACTS OFFERED

A cash or forward contract allows you to establish the delivery month, quantity, and price for your corn. Features

  • Guarantees a cash price
  • Potential to capture market carry

Advantages

  • Simplest type of contract
  • Can take advantage of favorable current market for future delivery months

Disadvantages and Risks

  • Cannot take advantage of further improvements in futures/basis
  • Corn must be of sufficient quality to be purchased by Christensen Farms

Example: On March 4th, you establish a $3.44 cash price for corn you’ll be delivering in October.

A fixed basis contract allows you to lock in a basis when you believe it is more favorable now than it will be later. You now have the ability to lock in a futures price within a specified time period before delivery. Features

  • Guarantees a local basis price
  • Establishing a price level can be delayed until a later time

Advantages

  • Timely delivery of corn based on contracts and storage
  • Provides flexibility to participate in markets and determine a cash price when you want
  • No storage fees
Disadvantages and Risks
  • Only protects a small portion of price risk. Futures risk is greater than basis risk
  • You bear the risk of any changes in the price levels over the life of the contract
  • Requires you to pay attention to the futures markets and determine best time to establish a cash price
  • Corn must be of sufficient quality to be purchased by Christensen Farms

Example: On February 3rd, you lock in a basis of -$.33 to the July board on 10,000 bushels to be delivered in June. The current CBOT futures price for July is $3.97. The cash price on February 3rd would therefore have been $3.64. On May 10th, you decide to establish your futures for your contract. July board is now $4.07 and your cash price is $3.74.

A price later contract allows you to deliver corn now, have flexibility to participate in markets, and lock in a price at a later date. Features

  • Deliver corn without establishing any price
  • Must be priced within one year of established date

Advantages

  • Deliver corn immediately and eliminate storage risk
  • Take advantage of basis/futures improvement
  • Can price the entire contract at once or in small quantities.
Disadvantages and Risks
  • Downside price risk is unlimited
  • Payment isn’t made until contract is priced
  • Ownership transfers to buyer
  • Handling or storage fees may apply
  • Corn must be of sufficient quality to be purchased by Christensen Farms

Example: On November 8th, you deliver corn on price later. The current cash price is $3.80. On April 14th you decide to price your contract at current cash price, $4.50, less any incurred fees.

A deferred payment contract allows you to delay payment for your corn. Features

  • Delays payment for corn deliveries
  • Cash, Forward, Fixed Basis, and Price Later contracts can be deferred
Advantages
  • Payment cannot be made until deferred date in contract
  • Deferred Payment Contracts need to be established prior to settlement
Disadvantages and Risks
  • Downside price risk is unlimited
  • Payment isn’t made until contract is priced
  • Ownership transfers to buyer
  • Handling or storage fees may apply
  • Corn must be of sufficient quality to be purchased by Christensen Farms

Example: On October 20th, you deliver and sell 12,000 bushels and set up a deferred payment to be made on January 1st of the upcoming year, or any date of your choice.

Capture market opportunities by placing a firm offer with us. You determine the bushels, your price target and delivery month, and offer duration (day, week, and month). When the market hits your price target, your contract goal will be achieved. We will notify you and provide you a written contract.

Feed Ingredient Department

Phone: 866-648-6588
Email: cornbids@christensenfarms.com

John Cook
Buyer
Phone: 507-794-8608
jcook@christensenfarms.com

Samantha Hesse
Buyer
Phone: 507-794-8604
shesse@christensenfarms.com

Amanda Huiras
Assistant Buyer
Phone: 507-794-8513
ahuiras@christensenfarms.com

Ben Brown
Assistant Buyer
Phone: 507-794-8537
bbrown@christensenfarms.com