A
A land measurement used primarily in the US and UK which equals 43,560 square feet.
An acre
A vessel, either motorized or towed, used to carry products in navigable waterways.
The price that the market participants are willing to pay.
Bid
These provide a means for measuring levels of quality and value for agricultural commodities (ie: #2 yellow corn.
Commodity Grades
A financial form required for all new buyers, prior to trading, issued and review by The Andersons' Credit Department.
Credit Application
The price difference between one futures option and another.
Future Spreads.
The act of simultaneously buying and selling in two nearly identical markets in order to take advantage of a price difference between two markets.
Arbitrage.
The differential that exists at any time between the cash, or spot, price of a given commodity and the price of the nearest future contract for the same or relative commodity.
Basis
The total cost of storing a physical commodity over a period of time.
Cost of carry
Engaging in a position intended to offset potential losses or gains that may be incurred by another position
Hedging
A form of alternative dispute resolution commonly used in commodity trading that resolves disputes outside the judiciary courts.
Arbitration
The monetary amount paid for transportation of a commodity. Can be quoted as dollars/ton, dollars/railcar, cents/bushel, dollars/mile, flat charge, etc.
Freight Rate
The total amount of a given commodity left over in all positions at the end of the crop year.
Carryover
Term most often used to describe a futures position in which is a trader is long one contract month of a given commodity while they are simultaneously short another month of the same commodity.
Spread
Upon review of a customer's financials, this is assigned to their account by The Andersons outlining payment terms, maximum accounts receivable, and maximum marked-to-market exposure.
Credit Limit
Regulations issued by the National Grain and Feed Association that reflect trade practice and facilitate trade
CIF (Cost, Insurance, Freight)
The action of buying a nearby futures contract and selling a deferred contract simultaneously.
Bull spreading
The quantity of product(s) that can be derived from a given amount of raw material.
Yield
The daily adjustment of margin accounts to reflect profits and losses.
A futures or cash market wherein prices for nearby delivery are higher than for deferred delivery.
Inverse or inverted market
A shipping term that refers to the transfer of goods from one mode of transportation to another en route to their ultimate destination
Transloading
The delay of a ship, freight car, or other carrier during the loading or unloading process, beyond the scheduled time of departure or delivery.
Transactions wherein an elevator or other merchandiser purchases grain or soybeans and resells them immediately.
Back-to-back
A term used in cash grain merchandising to signify that the quoted price for a commodity will result in its delivery on board a vessel, or in a facility.
Free on Board (FOB)