Sam Grieve

Regional Manager, South Australia

Avoid harvest pressure and selling grain below fair value by exposing grain to opportunities in post-harvest markets.

Flexi Grain’s Harvest Tonnage Contracts are Now Open.

A 10-month professionally managed program to provide post-harvest exposure to local and global grain markets.

Strategies to Maximise Value & Manage Price Risk

  1. Attempt to capture export margin by securing shipping capacity, and in doing so being able to sell at global values not local cash prices
  2. Reposition grain into Port Zones where shipping capacity has been secured.
  3. Where possible blend to optimise value
  4. Capitalise upon any domestic/export shorts that may develop during the year
  5. Focus on minimising warehousing and handling costs
  6. Manage risks and opportunities associated with movement in global prices via use of derivatives when and if deemed prudent

In years of big Australian crops, with limited export capacity and strong global demand, we see export margins typically expand, creating an opportunity for growers to capture elevation margins by selling directly into export markets.

Elevation margins are the difference between local cash prices and global values.

A major strategic push will be to secure export shipping slots so that accumulated grain can be sold at global values not local cash (i.e. capturing export margins).

Accumulated grain may be repositioned (sold in one port zone and re-purchased in another port zone or swapped across port zones amongst the trade) into Port Zones where Flexi Grain has access to shipping capacity.

Actual prices achieved by Flexi Grain will be dependent on the amount of export capacity secured by Flexi Grain as well as future movements in global and domestic grain markets.

Depending on how much shipping capacity Flexi Grain secures, your grain may not have 100% exposure to export margins, in which case your final program price will be a blend of export margin obtained on exported grain and results from local sales activities on the balance of grain held.

Growers wanting to participate in this program or for more information can do so by contacting Sam Grieve directly below.

No estimated grower return will be published until February 2023.
Grain can be delivered to any T-Ports or Viterra site. Flexi Grain’s management fee is $10/mt.

Payment Options

PAYMENT TYPEAMOUNT OF PAYMENTTIMING OF PAYMENT
1.60% Harvest Advance60% of Prevailing Local Cash PricesAdvanced 5 days end of week of transfer / delivery
2.80% Distribution80% Distribution of Estimated Grower EquityJune 2023
3.100% Distribution100% Distribution of Final Grower EquitySeptember 2023
Standard Payment Option

PAYMENT TYPEAMOUNT OF PAYMENTTIMING OF PAYMENT
1.60% Harvest Advance60% of Prevailing Local Cash PricesAdvanced 5 days end of week of transfer / delivery
2.80% Distribution80% Distribution of Estimated Grower EquityJuly 2023
3.100% Distribution100% Distribution of Final Grower EquitySeptember 2023
Deferred Payment Option B

PAYMENT TYPEAMOUNT OF PAYMENTTIMING OF PAYMENT
1.80% Distribution80% Distribution of Estimated Grower EquityJuly 2023
2.100% Distribution100% Distribution of Final Grower EquitySeptember 2023
Deferred Payment Option C