TONNAGE PROGRAM VIC
A 10-month professionally managed grain marketing program.
Providing NSW growers with exposure to export margins.
LIMITED CAPACITY EXISTS
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
to Maximise Value & Manage Price Risk
- Attempt to capture export margin by securing shipping capacity, and in doing so being able to sell at global values NOT local cash prices
- Reposition grain into Port Zones where shipping capacity has been secured.
- Where possible blend to optimise value
- Capitalise upon any domestic/export shorts that may develop during the year
- Focus on minimizing warehousing and handling costs
- 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.
|AMOUNT OF PAYMENT
|TIMING OF PAYMENT
|60% Harvest Advance
|60% of Prevailing Local Cash Prices
|Advanced 5 days end of week of transfer / delivery
|80% Distribution of Estimated Grower Equity
|100% Distribution of Final Grower Equity
DON’T MISS THE BOAT
PROGRAM OPPORTUNITY CLOSES FEB 28th
CONTACT VIC REGIONAL MANAGER DUSTIN LOVELL
Call Dustin to learn more about the program and the opportunity for growers to maximise harvest grain prices.
Or complete the form to commit tonnes today.
REGIONAL MANAGER, VIC