Cash Contracts:  Cash contracts are the most straight forward, well known form of marketing for producers.  Cash contracts include the following priced sales.
            - Spot purchases across the scale
            - Sales for immediate delivery from the farm to elevator
            - Selling from stored bushels at elevator
            Forward Contracts:  Sales for delivery at a later point in time to the elevator.  

Storage:   Storage is simply keeping 100% of the price risk associated with ownership;  price is not fixed, basis is not fixed.  Title remains with seller until the grain is sold.  

Price Later or Delayed Pricing (DP) contract:  DP is an alternative under which title passes from the seller to the buyer upon delivery.  From a marketing perspective, this alternative function much like storage for the seller because price is not fixed nor is the basis.  The main difference is that the producer no longer has title to the grain.

Basis contracts:  Basis contracts are an advanced marketing alternative for the seller.  They allow the seller to capture a strong basis yet benefit from any increase in futures within the pricing time frame.  Basis is the difference between cash or contract price and CBOT futures.   Elevator will advance 80% of current value of contract at completion of delivery against the contract.  

Example:  Customer sees nearby basis on corn is at a historically high -10 cents versus the December Chicago Board of Trade futures.   Customer thinks that prior to harvest we could see a rally in corn futures but thinks by harvest, basis will weaken as they normally do on a seasonal basis.   Customer sells 5000 bushels at the -10 cent basis.   In 30 days the futures price has increased by 50 cents and basis has weaken to a more seasonal -25.   Customer sets futures to his basis contract and receives 15 cents more than if he were to do nothing prior to the rally.