Minimum Price Contract
A forward contract with a provision guaranteeing a minimum price at delivery of the underlying agricultural commodity.
Investopedia Commentary
Minimum price contracts provide certainty for some investors wishing to hedge their positions. As a bare minimum, price is fixed at delivery.
Related Links
Futures Fundamentals
A Beginner's Guide To Hedging
See also: Commodity, Delivery, Futures Contract, Hedge, Volatility