Pool Schedule - Flexi Grain
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Pool Schedule
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 all counterparty credit risk.
Established in the Victorian Mallee in 2013 to service
Eastern Australia growers, Flexi Grain expanded This risk is managed using a combination of
into South Australia and Western Australia in 2017. mechanisms including:
Flexi Grain’s Head Office is located in 1) Credit Insurance
SWAN HILL, VICTORIA. 2) Pre paid grain sales
3) Utilisation of third party clearing services
Flexi Grain is a member of Grain Trade Australia
(GTA) and complies with GTA’s Operating Standards
Disclosure and Communications
for Pool Providers. Flexi Grain is also a member of
the Grain Industry Association of Victoria (GIAV).
Flexi Grain provides growers with full disclosure
of all pool financial statements on request.
Financial Security and Governance
Monthly estimated pool equity statements are
made available to growers via a client portal from
Grower assets (grain and proceeds from grain
February of each year until the closure of all pools.
sales) are protected by a ring fenced trust structure
known as FXG Group Unit Trust.
Market leading strategy and supply/demand
updates are circulated to pool participants on a
Flexi Grain has independent oversight of the FXG
regular basis.
Group 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
• Hectare 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
> Remote 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 Sales (Physical & Derivative)
Minimum Sales (Physical & Derivative)
80%
CROP PRODUCTION
60%
40%
20%
0%
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEPPOOL 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 The Tonnage Contract will have costs that may
November 1 and conclude on, or before, September include, but are not limited to, derivatives, options,
25 in the following year. grain receival, 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 FINAL POOL RETURN
grain by the pool (FXG GROUP). Payment deferral is The final pool return will be calculated and
available on request. communicated on a Port Basis or Free in Store net of all
costs. Site and time of entry indexing will be applied
An 80% pool distribution will take place on or if applicable.
before, June 25, with 100% of the final remaining
pool equity distributed on or before, September 25.
RECEIVAL POINTS
MANAGEMENT FEE All grain transferred to Flexi Grain via a Tonnage
Contract must be delivered to an approved
The Tonnage Contract management fee is $7.50/mt receival site.
excluding GST and this will be deducted from the first
pool payment.You can also read
