Pool Schedule 2020 - Flexi Grain
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Pool Schedule 2020
Flexi Grain is a grassroots pool manager focused on Managing Counterparty Credit Risk
maximising grower returns, while minimising price risk.
Flexi Grain’s pool mandate requires management of
Established in the Victorian Mallee in 2013 to service all counterparty credit risk.
Eastern Australia growers, Flexi Grain expanded into
South Australia and Western Australia in 2017. This risk is managed using a combination of
mechanisms including:
Flexi Grain’s Head Office is located in
SWAN HILL, VICTORIA. 1) Credit Insurance
2) Pre paid grain sales
Flexi Grain is a member of Grain Trade Australia (GTA)
3) Utilisation of third party clearing services
and complies with GTA’s Operating Standards for Pool
Providers. Flexi Grain is also a member of the Grain
Disclosure and Communications
Industry Association of Victoria (GIAV).
Flexi Grain provides growers with full disclosure of
Financial Security and Governance
all pool financial statements on request. Monthly
estimated pool equity statements are made available
Grower assets (grain and proceeds from grain sales) are
to growers via a client portal from February of each
protected by a ring fenced trust structure known as FXG
year until the closure of all pools.
Group Unit Trust.
Market leading strategy and supply/demand updates
Flexi Grain has independent oversight of the FXG Group
are circulated to pool participants on a regular basis.
Unit Trust to ensure compliance with GTA’s Operating
Standards for Pool Providers.
Hectare Contract
(Season long)
Take advantage of volatility in the international and domestic grain markets from the moment your crop
is sown,without the inherent risks associated with futures trading and/or fixed forward sale contracts.
Commencing at seeding (April 1), this 18 month actively managed pool provides growers with exposure
to both pre and post-harvest grain markets whilst constantly monitoring production risk.
Only Flexi Grain’s Hectare Contract
can provide growers with such
combined value
•H
ectare based contract with no wash
outs (only deliver what you grow)
• Professional price risk management
commencing at seeding for up to 18
months
• In crop production oversight
>R
emote access to in paddock
rainfall data
> NDVI imagery
> Real time in season yield forecast
SALES PROGRAM
Flexi Grain’s Hectare Contract is a non-restrictive 18 month pool designed to capture and manage price opportunities
from the moment the crop is sown. Pre-harvest pricing opportunities may be managed by option and/or basis
management strategies. Options may be executed over a range of grain and fx futures markets including Chicago
Board of Trade (CBOT), Kansas City Board of Trade (KCBT), Euronext (Matif), and the Australian Stock Exchange (ASX).
Harvest and post harvest pricing opportunities are managed by physical and/or derivative management strategies.
Derivative strategies may utilise bank SWAPs, futures and/or options in the CBOT, KCBT, Matif and ASX futures
markets. Physical strategies may utilise but are not limited to forward sales, commodity, and port zone swaps.
Sales Target
100% Maximum Option
80% Stategies
CROP PRODUCTION
60% Maximum Sales
(Physical & Derivative)
40%
20% Minimum Sales
(Physical & Derivative)
0%
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
POOL DURATION Growers contract to the Hectare Contract from April 1, with 100% of their equity being distributed on, or before, September 25 in the following year. GROWER PAYMENTS The Hectare Contract offers growers a 60% Harvest Advance, paid weekly, following receipt of grain by the pool (FXG GROUP). Payment deferral is available on request. An 80% pool distribution will take place on, or before, June 25, with 100% of the final remaining pool equity distributed on, or before, September 25. MANAGEMENT FEE The Hectare Contract Management Fee is $10/mt excluding GST and this will be deducted from the first pool payment. POOL COSTS The Hectare Contract Pool will have costs which may include, but are not limited to, derivatives, options, grain receival, transport, transfer, storage and insurance, outturn, service fees, brokerage, finance, interest, royalties and statutory levies. FINAL POOL RETURN The final pool return will be calculated and communicated on a Port Basis or Free in Store net of all costs. Site and time of entry indexing will be applied if applicable. RECEIVAL POINTS All grain grown under a Hectare Contract must be delivered to an approved receival site. The list of approved receival sites can be found at flexigrain.com.au
Tonnage Contract
(POST Harvest)
A ten month harvest pool benchmarked on outperforming the
average harvest cash price.
The pool is structured to provide exposure to post-harvest volatility
in local and global markets.
Harvest contracts provide to growers:
• Fixed tonnage contracts
• Professional price risk management commencing at harvest
SALES PROGRAM
Flexi Grain’s Tonnage Contract is a non-restrictive 10 month
pool designed to capture and manage price opportunities in
the post harvest grain markets. Harvest and Post-Harvest
pricing opportunities are managed by Physical and/or Derivative
management strategies.
Derivative strategies may include, but are not limited to, utilising
bank SWAPs, futures and/or options in the CBOT, KCBT. Matif and
ASX futures markets, Physical strategies may utilise forward
sales, commodity and port zone swaps. Foreign exchange
contracts can also be utilized as a risk management tool.
Sales Target
100%
80%
CROP PRODUCTION
60%
40%
20%
0%
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
Maximum Sales (Physical & Derivative)
Minimum Sales (Physical & Derivative)POOL DURATION POOL COSTS
The Tonnage Contract will commence on November The Tonnage Contract will have costs that may include,
1 and conclude on, or before, September 25 in the but are not limited to, derivatives, options, grain receival,
following year. transport, transfer, storage, insurance, outturn, service
fees, brokerage, finance, interest, royalties and statutory
levies.
GROWER PAYMENTS
The Tonnage Contract offers growers a 60% Harvest
Advance, paid weekly, following receipt of grain by the FINAL POOL RETURN
pool (FXG GROUP). Payment deferral is available on The final pool return will be calculated and communicated on
request. a Port Basis or Free in Store net of all costs. Site and time of
entry indexing will be applied if applicable.
An 80% pool distribution will take place on or before,
June 25, with 100% of the final remaining pool equity
distributed on or before, September 25.
RECEIVAL POINTS
All grain transferred to Flexi Grain via a Tonnage Contract
MANAGEMENT FEE must be delivered to an approved receival site.
The Tonnage Contract management fee is $7.50/mt
excluding GST and this will be deducted from the first
pool payment.You can also read
