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A Spot Sale is when the grain is sold at the current market price.  The price is not determined before the sale.  If a seller believes that prices will continue to decline, then this is the time to do a spot sale.



Ÿ         Eliminates further price risk

Ÿ         Payment for grain is immediate

Ÿ         Prevents storage and interest costs

Ÿ         Quality risk of grain deterioration with storage is passed on to buyer



Ÿ         Seller cannot take advantage of improvement of prices in future.

Ÿ         Availability of transportation may make spot sale unavailable.

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