POST HARVEST

TONNAGE PROGRAM NSW

A 10-month professionally managed grain marketing program.
Providing NSW growers with exposure to export margins.

LIMITED CAPACITY EXISTS

The Opportunity

GAIN EXPOSURE TO GLOBAL GRAIN VALUES

Australia has just harvested its largest wheat crop in history.
Around 10% higher than the previous record set last year!

This creates a burdensome price dynamic for local grain that cannot be exported.
With limited export capacity and strong global demand, export margins are expanding.

Flexi Grain’s Tonnage program provides growers with exposure to export margins by selling directly into export markets.

  • Capture global grain values not local cash prices
  • Flexible payment options, including deferrals


In addition, participating growers will have participation to any increase in global values (e.g escalation of the Ukraine war, Russian export limitations) – local cash prices may not reflect 100% of any such increase.

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

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.

Capture Global Grain Value and Maximise Your Grain Price.

TONNAGE PROGRAM OPPORTUNITY CLOSES FEB 28

OUR 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 minimizing warehousing and handling costs
  6. Manage risks and opportunities associated with movement in global prices via the use of derivatives when and if deemed prudent

HOW TO PARTICIPATE

Growers wanting to participate in this program can do so via a Tonnage Contract.

No estimated grower return will be published until February 2023.

Grain can be delivered to the specified site. Flexi Grain’s management fee is $10/mt.

Actual prices achieved will be dependent on future movements in global values, exchange rates, and shipping and handling costs.

PAYMENT TERMS*

PAYMENTPAYMENT 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
*Deferred Payment Terms Available

DON’T MISS THE BOAT

PROGRAM OPPORTUNITY CLOSES FEB 28th

CONTACT NSW REGIONAL MANAGER JARROD TONKIN

Call Jarrod to learn more about the program and the opportunity for growers to maximise harvest grain prices.
Or complete the form to commit tonnes today.

JARROD TONKIN

REGIONAL MANAGER, NSW