Documentary collection is a method of trade finance in which the exporter’s bank sends documents to the importer’s bank and receives payment for the shipped goods.
Documentary collection is less common than cash advance and open account conditions, especially in countries with weak contract enforcement.
Documents against payment require the importer to pay the draft amount at sight. Documents against acceptance require payment by the specified date.
Agribusiness is a combination of the words “agriculture” and “business” and refers to any business related to agriculture and commercial activities related to agriculture.
Cash and carry arbitrage seeks to exploit pricing inefficiencies between the spot and futures markets for an asset by going long on the spot market and going short on the futures contract.
Futures contracts are financial derivatives that oblige the buyer to purchase some underlying asset (or the seller to sell that asset) at a predetermined price and date in the future.
Heating Degree Day (HDD) measures the average number of days the temperature falls below 65 degrees Fahrenheit. At this temperature, heating systems are turned on in buildings to maintain an average temperature of 70 degrees.
centner (abbreviated as CWT) is a standard unit of weight or mass used in some commodity markets. It can also be used to determine the price of small batches of goods.