2024 Delivered Container Terminal (DCT) Pool

Delivering the supply chain savings back to the grower.

The DCT Pool has been designed to allow growers to participate in the Delivered Container Terminal (DCT) market, via containerisation capacity held at Mallee Hay, Ultima.

THE STRATEGY

To maximise market participation pre and post the Northern Hemisphere harvest (JUL-SEP) the Pooling, delivery and sales campaign will be run over a three month period, with the Pool being audited and finalised 30 days after the final sale.

THE BENEFITS
  • Utilise on farm storage
  • Increase market liquidity
  • Receive export price (after costs)
  • Increased delivery volume time into local site
  • Freight advantage Vs delivered Melbourne
  • Flexible payments options
  • Grain sales are insured
  • Locally delivery (Mallee Hay, Ultima)
THE PROGRAM SCHEDULE
DCT POOL 1
  1. Delivery Period – Buyers call, April 1st – June 30th
  2. Delivery Location – Mallee Hay, Ultima
  3. Final payment – August 15th
  4. Limited Tonnage Pool – Based on Mallee Hay containerisation capacity
DCT POOL 2
  1. Delivery Period – Buyers call, July 1st to September 30th
  2. Delivery Location – Mallee Hay, Ultima
  3. Final payment – November 15th
  4. Limited Tonnage Pool – Based on Mallee Hay containerisation capacity

DERIVATIVE MANAGEMENT

At the Pool manager’s discretion, Flexi Grain may choose to use a mixture of local or global derivatives to manage price risk and currency appreciation. Flexi Grain may use the most relevant risk management derivatives to manage price risk for the pool. This may include, but is not limited to ASX, CBOT futures and Options.

Foreign exchange management via the use of Forward exchange contracts (FEC) and Options structures may be used to manage an appreciating Australian dollar.

PAYMENT OPTIONS

Advance payment will include a 60% advance payment 5 days end of week of delivery and 100% of the remaining equity will be distributed 30 days after the settlement of the final sale. The value associated with the 60% advance, will be linked to the local Profarmer cash bid, as this methodology is used for all advances across all Pools.

Deferred payment options are available and will be made payable 30 days after the settlement of the final sale.

PAYMENT TERMS*

PAYMENTTIMING
60%Advance of the market value paid 5 days end of week of delivery
100%Payment 30 days after settlement of final sale
*Deferred Payment Terms available

DUSTIN LOVELL

REGIONAL MANAGER, VIC

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