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Calcimator

Forward Contract Calculator

Forward pricing from futures, basis, and delivery period.

Inputs

Results

Forward price ($/bu)

5.65

Total revenue ($)$56,500.00
Storage saved ($)$2,400.00
Effective price ($/bu)5.89
% of futures captured94.17
How to Use This Calculator
  1. Enter the Futures Price for the delivery month and your Expected Basis at delivery.
  2. Enter Bushels to contract, Months to Delivery, and Storage Cost per bushel per month.
  3. Review the Forward Price Per Bushel locked in by the contract (futures + basis).
  4. Check Total Revenue and Effective Price including storage savings.
  5. Use % of Futures Captured to evaluate how much price risk is eliminated by forward contracting.

How the result changes with Futures price ($/bu)

Futures price ($/bu)Forward price ($/bu)
3.012.66
1110.65
2019.65
2726.65

What each input means

Futures price ($/bu)
Futures contract price for the delivery month.
Expected basis ($/bu)
Expected local basis at delivery time.
Bushels to contract
Quantity to forward contract.
Months to delivery
Months until contract delivery date.
Storage ($/bu/mo)
Monthly on-farm storage cost per bushel.

What each result means

Forward price ($/bu)
Locked-in forward contract price (futures + basis).
Total revenue ($)
Total revenue at forward contract price.
Storage saved ($)
Storage cost avoided by contracting forward.
Effective price ($/bu)
Forward price + storage savings per bushel.
% of futures captured
Forward price as percentage of futures.

How this is calculated

Worked example, using the default values

  1. Identify Input Parameters
    4 parameters
    Futures price ($/bu) = 6, Expected basis ($/bu) = -0.35, Bushels to contract = 10000, Months to delivery = 6 = 5 input(s) provided
  2. Calculate Forward price
    Forward price = round((futuresPrice + expectedBasis) * 10000) / 10000
    5.65 = 5.65
  3. Calculate Total revenue
    Total revenue = round(forwardPrice * bushels * 100) / 100
    56500 = $56,500
  4. Calculate Storage saved
    Storage saved = round(storageCostPerBuMo * deliveryMonths * bushels * 100) / 100
    2400 = $2,400

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