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forward contract

   Also found in: Dictionary/thesaurus, Wikipedia 0.09 sec.
Forward Contract
A cash market transaction in which delivery of the commodity is deferred until after the contract has been made. Although the delivery is made in the future, the price is determined on the initial trade date.

Notes:
Most forward contracts don't have standards and aren't traded on exchanges. A farmer would use a forward contract to "lock-in" a price for his grain for the upcoming fall harvest.

Forward contract
A contract that specifies the price and quantity of an asset to be delivered on in the future. Forward contracts are not standardized and are not traded on organized exchanges.
forward contract
An agreement between two parties to the sale and purchase of a particular commodity at a specific future time. Although forward contracts are similar to futures, they are not easily transferred or canceled. Thus, they are not liquid.
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GAME PLAN: Hedgers and cash-only marketers kicked off 2007-crop marketings with a 10% cash forward contract sale Dec.
Fundamental analysis by Pro Farmer
To push forward contract talks that had been at an impasse since November
PALMDALE TEACHERS OK CONTRACT LANGUAGE THAT COULD LIMIT COVERAGE ... by Daily News (Los Angeles, CA)
Because revenue-based plans such as Revenue Assurance and Crop Revenue Coverage offer both a base price and a harvest time price, they provide protection against not only a crop failure, but also the market moving against a hedge or forward contract through the growing season, allowing producers to feel comfortable pricing up to their guarantee prior to harvest.
Outlook by Smith, Linda H. / Top Producer
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