HIGH PROTEIN

WHEAT OPPORTUNITY

NOW OPEN

Gain Exposure to Global Grain Values

HIGH PROTEIN WHEAT

Global high protein wheat supplies are tighter than normal, with drought in the key producer Canada seeing production down around 12% on top of an already tight stocks position. A relatively soft finish to crops in Victoria and Southern New South Wales crops and drought reduced crops in Northern New South Wales and Southern Queensland, suggests Australian supply of high-protein wheat will be limited. Export demand for South Australian high-protein wheat will be strong across Asia. To capitalise on this opportunity Flexi Grain is accumulating an export parcel of high protein wheat ex Lucky Bay and/or Wallaroo with intended sale and shipment in Q1/Q2 2024. Participating growers will have full exposure to prevailing global values at the time of sale.

ESTIMATED GLOBAL VALUES AS AT (13/11/2023)

Current bulk export market bids for H1 wheat (+13% protein) are around an equivalent SA Port price of $435/tonne ($415/tonne Thevenard), representing a spread in excess of $45 over current estimated APW1 global values. This puts the estimated H2 spread to $15. Final program pricing will be dependent on protein levels achieved, future movements in global wheat prices, exchange rates and shipping costs. A management fee of $10/tonne will be deducted from Grower Returns.

Currency risk will be actively managed via a hedging strategy during grain accumulation.

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.

HOW TO PARTICIPATE

Growers wanting to participate in this program can do so via the tonnage contract.

No estimated grower return will be published at this stage.
Final pricing will be dependent on future movements in global malt prices, exchange rates, and shipping costs. A management fee of $10/ tonne will be deducted from Grower Returns.

Accepted Varieties

H1
AUH2
H2 (LIMITED)

Delivery Sites

Any T-Ports or Viterra site.

PAYMENT TERMS*

PAYMENT OPTION60%80%100%
OPTION A (DEFAULT)HARVEST ADVANCE 5 DAYS END OF THE WEEKJUNE 15thSEPTEMBER 25th
OPTION BHARVEST ADVANCE 5 DAYS END OF THE WEEKJULY 15thSEPTEMBER 25th
OPTION C100% Distribution of Final Grower EquityJULY 15thSEPTEMBER 25th
*Deferred Payment Terms available

DON’T MISS THE BOAT

CONTACT TO PARTICIPATE WITH TONNES

Call Sam Grieve to secure a tonnage contract or seek further details.

SAM GRIEVE

REGIONAL MANAGER, SA