Public Elevator

AAA

DEFINITION of 'Public Elevator'

A grain elevator that, for an associated fee, stores the bulk grain of public clients. A public elevator allows farmers to store grain without having to build individual silos, and are typically found at transit points where grain is shipped to market. If the grain of each farmer is mixed together within the public elevator, it is impossible to tell the products of individual farmers apart. This reduces the competition between individual farmers, and the operator sells the grain at the best price he or she can get.

INVESTOPEDIA EXPLAINS 'Public Elevator'

A public elevator must be approved by an exchange to be considered a regular delivery location for futures contracts. This is primarily because commodity traders want to make sure that the public elevator is well regulated, and that unscrupulous elevator owners do not allow poor product to be mixed in with good product. It is often operated for a grain pool which is a farming co-operative.

RELATED TERMS
  1. Cash Commodity

    In futures trading, the cash commodity is delivered for payments. ...
  2. Commercial Grain Stock

    The current amount of harvested grain crops stored domestically, ...
  3. Approved Delivery Facility

    A facility authorized by an exchange to be used as a location ...
  4. Cost Of Tender

    The total charges associated with the delivery and certification ...
  5. Crop Year

    The time period from one year's harvest to the next for an agricultural ...
  6. Grading Certificate

    A document issued by inspectors or an approved grading panel ...
Related Articles
  1. Can Investors Trust Official Statistics?
    Economics

    Can Investors Trust Official Statistics?

  2. Harvesting Crop Production Reports
    Options & Futures

    Harvesting Crop Production Reports

  3. Grow Your Finances In The Grain Markets
    Active Trading

    Grow Your Finances In The Grain Markets

  4. Interpreting Volume For The Futures ...
    Options & Futures

    Interpreting Volume For The Futures ...

comments powered by Disqus
Hot Definitions
  1. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  2. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  3. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  4. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  5. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
  6. Limit-On-Open Order - LOO

    A type of limit order to buy or sell shares at the market open if the market price meets the limit condition. This type of ...
Trading Center