Corn Policies:  08/31/18 4:11:18 PM


Corn Policies - Effective October 1, 2018
Contract alternatives
There will again be several options for pricing corn delivered at harvest. Those include:

  • Forward Contract – Corn is delivered and priced via a preexisting delivery period contract.
  • Spot Sold – Corn is delivered and priced against the current market.
  • Extended Price: 70% advance of cash price once contract is filled, 3 cent per bushel service fee
  • Price Later – Corn can be applied to a Price Later contract. Corn may be priced against the spot market only. Forward pricing of Price Later corn is not allowed.
    • Price Later fees: 18 cent/bu minimum thru December 31st, 2017 then 3 cents per bushel per month thereafter. Final pricing date of August 20, 2019
  • Average Price – Members may choose to apply their corn to an Average Price contract. The service charge for Average Price is 2 cents per bushel. This option is not available to non-members.   Delivery trimesters are:  Sept 1-Dec 31, Jan 1-Apr 30, May 1-Aug 31.
  • Basis Contract - Final price must be set against the nearby before delivery.
  • *During harvest only, Average Price Contracts will be limited to the total amount of Corn Delivery Rights (shares) each member owns.
General Policies
  • All corn must be sold or pledged to a Credit Sale Contract prior to the first of the month following delivery.
  • Payment due on corn received will be made on the Thursday following delivery.
  • Corn that is delivered will be first applied to any existing delivery contracts for the period delivered in. Corn delivered in excess of an existing contract will be put in the open position and left there until sold or applied to a signed credit sale contract prior to noon on the last business day of current month at which time all open bushels will be spot priced.
  • Open (undesignated) corn will be sold at noon on the end of the month of delivery.
  • Corn is not considered to be applied to a credit sale contract until a signed contract by the producer is on file at QCCP.
  • Corn applied to a Price Later/Delayed Price contract will be priced against the spot market only. Forward pricing of PL/DP corn is not allowed.
  • Credit Sale contracts will be written for a term not to exceed one year from the date of delivery.
  • Forward priced corn is for a specific delivery period.
  • Hedge to arrive service fee is 4 cents per bushel and will be taken out of the settlement proceeds.
  • Contracts that are cancelled by the seller or are not delivered on by the seller, will result in a 20 cent per bushel charge on the open balance plus the difference (cost), if any, in the market price for corn in the same delivery period.
  • Due to the nature of processing, QCCP’s ability to receive corn is governed by the daily need for corn, available space, and plant operations.
  • Corn Policies Are subject to change without notice
Hours of unloading will be extended as the harvest season dictates. Our policies as well as current unloading hours can be accessed from our website www.quad-county.com or give us a call at (712) 282-4628


Discount Schedule 


QCCP Shareholders
  • Corn must be 18.0% moisture or less and be #2 yellow quality or better. Loads below #2 yellow quality subject to rejection
  • Corn over 15.0% moisture will be shrunk at 1.40% per point. No drying charge will be assessed on corn from 15.1%.to 18.0% moisture.
  • Corn above 18%, if accepted, will be shrunk at 1.40% per point. Drying charge will be 3.0 cents per point of moisture above 18.0%
     
  • Other discountable factors include:
1. Test weight                                      Discount 
                               53.9 to 52.0 pounds                        1 cent per pound
                               51.9 to 50.0 pounds                        2 cents per pound
                               49.9 pounds and under                  3 cents per pound


    2. Foreign Material                              Discount 
                    3.1% to 5.0%                                2 cents per point    
                                                       5.1% to 6.0%                                3 cents per point                               
                  6.1% and over                              4 cents per point

3. Damage                                           Discount
                               5.1% to 10.0%                              2 cents per point 
                              10.1% and over                            3 cents per point

4. Other                                               Discount  
                               Musty, Sour, COFO                      10 cents per bushel each factor
               Infested                                            3 cents per bushel

Non-shareholders
  • Corn must be 18.0% moisture or less and be #2 yellow quality or better. Loads below #2 yellow quality subject to rejection
  • Corn over 15.0%, will be shrunk at 1.40% per point. A drying charge of 3.0 cents per point will be charged above 15%.
  • Other discountable factors include:

1. Test weight                                        Discount 
                              53.9 to 52.0 pounds                         1 cent per pound
                              51.9 to 50.0 pounds                         2 cents per pound 
                             49.9 pounds and under                    3 cents per pound

2. Foreign Material                              Discount 
                             3.1% to 5.0%                                   2 cents per point 
                             5.1% to 6.0%                                   3 cents per point
                             6.1% and over                                 4 cents per point

3. Damage                                            Discount 
                             5.1% to 10.0%                                 2 cents per point
                             10.1% and over                               3 cents per point

4. Other                                                  Discount 
                            Musty, Sour, COFO                          10 cents per bushel each factor  
                            Infested                                                3 cents per bushel 




Quad County Corn Processors reserves the right to reject corn that is not suitable for processing.
POLICIES AND DISCOUNTS SUBJECT TO CHANGE WITHOUT NOTICE
 

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