Open market refers to all grain marketing
transactions outside of the Canadian Wheat Board. For example,
canola may be sold to a processing plant where they make canola
oil or it may be sold to an elevator company for resale on the
Canadian or export market. Private agreements between producers
are also open market transactions.
Producers of alternative crops such
as mustard, canary seed, triticale, lentils and sunflowers may
choose to market their grain or oilseeds by using a contract.
The producer agrees to grow and produce a crop that will be sold
to the buyer at a preestablished price. The contract purchaser
of the crop then markets it on the open market. Because there
are a limited number of buyers of these specialty crops, contract
marketing is a small portion of the marketing techniques used
in the grain and oilseed industry. |