(Frequently Asked Questions)

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      What are the grain trading hours at the Chicago Board of Trade? The CBOT's day trading sessions are conducted Monday through Friday with the markets opening at 9:30 am and closing at 1:15 pm. Electronic night trading sessions are conducted Sunday through Thursday with trade beginning at 6:30 pm and closing at 6:00 am.

     Why is there electronic night trading? It was developed in response to overseas demand and competition in Asia and Europe. Overnight trading allows for quicker reaction to world events affecting the markets.

    Where can grain market trading activity be found on the internet? The Chicago Board of Trade offers the most complete and reliable information pertaining to grain market trading activity. To access the trading information, log on to //www.cbot.com/ and from CBOT's home page click on the "Agricultural" tab located under "Free Historical Data". After selecting a commodity, click on the "Quotes" tab then click on the "Open Auction" option for day trading price quotes or "Electronic" option for night trading price quotes.

    What is "Basis"? "Basis" is the difference between a cash grain price and a futures price. For example, Stonington Cooperative Grain's cash price of grain at a specific point minus the price of an appropriate Chicago Board of Trade futures contract is the basis. Basis also gives the relationship between the local cash market and the futures market. It is made up of costs such as freight, elevation, storage costs and carrying charges. Basis levels are representative of local supply and demand and as such move independently of the futures market. For example, when farm deliveries are slow and demand is strong, basis levels become stronger (higher) to pull grain into the system with higher cash prices and when demand is low and grain stocks are high, basis levels tend to be weaker (lower).

     What is price "protection"? Protection is a monetary adjustment deducted from the current grain bid and is usually taken in response to negative news when the grain markets are not in session. Protection can help limit price risk until the markets reopen.

    Why can't a farmer pay his farm employees in grain at SCG? By law, SCG is only allowed to conduct business with producers of agricultural products. In order to be classified as a grain producer, an individual or entity must be liable for all of the risks involved with production including planting, growing, harvesting and marketing. Since farm employees are not liable for these risks, they cannot be classified as a producers.

    What are allocated retained earnings? The non-cash portion of patronage refunds are issued in allocated retained earnings which are a financial investment in the cooperative. They cannot be purchased from the cooperative.

    When are producers eligible to have their allocations redeemed? The situations that permit equity in SCG to be redeemed are outlined in the cooperative's stock/equity policies. The policies can be located on the "About us..." page.