Soybean farmers face a variety of marketing alternatives each year. Selling to a grain buyer at harvest is one way to sell soybeans. Another alternative is to store soybeans (either commercially or on-farm) and sell them later. Farmers may also set a price for their soybeans before harvest by signing a cash-forward contract with a grain buyer. The contract specifi es the quantity, price, grade, quality and date of delivery. Because prices have been historically lowest during harvest, storing and cash-forward contracting are ways to price soybeans before or after the harvest season, in hopes of achieving higher prices.
"PB1770-A Guide for Considering and Developing a Farmers Market in Tennessee," The University of Tennessee Agricultural Extension Service, PB1736-3.1M-12/03 R12-4110-034-001-04, http://trace.tennessee.edu/utk_agexmkt/5