back pricing

Definition of "back pricing"
  1. Setting the cost of a commodity in a prior agreement to buy by referencing future market data at monthly or other delivery intervals
How to use "back pricing" in a sentence
  1. The energy company applied back pricing to ensure stability through fluctuating market conditions.
  2. The grain purchasing contract was finalized using back pricing based on futures market trends.
  3. The manufacturer used back pricing to set the price of raw materials aligned to commodity market rates.

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