Grain pools here

[malleefarmer]

Operating as managed-sales programs, they are an option favoured by growers chasing a staggered cashflow from the part of their crop they do not wish to market themselves.

The pools growers choose depend on how much risk wanted.

Pool operators basically charge $15 per tonne and give minimum locked in return, they trade derivatives with the $15 rather than growers doing it themselves.

Grain potentially is on sold to exporters or domestic market and premium is how much they make from trading. Have one friend who uses them says they trade both sides of the market moves and trade 4 or 5 cent moves up and down to add more than initial $15.

My gut feel at moment is domestic market full until feb, exporters booked until similar time frame but more ships due after that, so sales programme in full swing, box market on going every day.

Again a guess 60 plus % sold for cash either spot or foward contracts done during year, 25% warehoused in elevator system or on farm unsold, other 10 15% May end up in these managed pools or traditional pools.

Interesting AWB don’t run pools anymore cash trading only.

Some of you experts wouldn’t give a pool operator $15 per tonne to speculated with, others think far easier for expert to do it than oneself.

Lots of guys wondering what the heck there gonna do with unsold tonnes.

Wheat currently $265 per tonne on farm.

So marketing year we’ve gone from $325 per tonne on farm peak pricing to we’re we are today.

Fall has been dramatic last 10 days.

I still have a few contracts to fill done back in April.

Australian crop will get upgraded again underestimated by 5 to 10% on last revision which was about 10 days ago as well.

[malleefarmer]

Pool operators generally claim well-managed pools will return contributing growers up to $18-$19 per tonne over the harvest cash market.

Underpinning the appeal of pools managed by majors is “ring-fencing”, where pool assets exist in a separate legal entity to other business activities, and operators pay credit insurance to negate the risk of a counterparty default.

I’ve read fine print of some guess it’s worth the paper it’s written on.

If I achieve top grade milling wheat may well pool some.

Ain’t done it since the late 90s

[LEP]

Pool operators generally claim well-managed pools will return contributing growers up to $18-$19 per tonne over the harvest cash market.

Underpinning the appeal of pools managed by majors is “ring-fencing”, where pool assets exist in a separate legal entity to other business activities, and operators pay credit insurance to negate the risk of a counterparty default.

I’ve read fine print of some guess it’s worth the paper it’s written on.

If I achieve top grade milling wheat may well pool some.

Ain’t done it since the late 90s

Do you receive any of the proceeds from the grain upfront or is it a delayed disbursement? Because if you give them your grain plus $15, is $18 or $19 enough of a return?

Hasn't alot of the market movement already taken place?

[malleefarmer]

Do you receive any of the proceeds from the grain upfront or is it a delayed disbursement? Because if you give them your grain plus $15, is $18 or $19 enough of a return?

Hasn't alot of the market movement already taken place?

Most pool operators give you 60% up front.

Others distribution pools 25% April July oct jan.

Market movement they trade rises and falls to add to end price. Quite speculative some pool operators.