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About Fixed Grade ›

About AWB Fixed Grade Contract

A Fixed Grade Contract offers an opportunity to capture market premiums before and after the pressure of harvest.  Contracts are a firm commitment of tonnage of a specific grade and may offer premium prices at a single point in time. 

Contracts are negotiable on the basis of the AWB daily cash price which reflects activity in the world grain markets.All Quality increments are locked in at time of contracting.

Contract Specifications

  • Fixed Price
  • Fixed Tonnage
  • Fixed Grade
  • Protein, screenings and moisture increments payable as per contract terms
  • Payment based on binned grade 

A contract can be negotiated over the phone.  Confirmation will be sent to you immediate for your records.  The terms and conditions are binding at the time of contracting.  If you are concerned about meeting contract specifications, talk to AWB to discuss your options.

Managing Risk
The Fixed Grade Contract has a production risk and timing risk because it is a commitment for delivery of a specific grade, taken at a single point in time.

Guaranteed Payment
Quote your Fixed Grade contract number when you deliver the grain to receive full payment within 30 days from date of delivery (transfer).

Risk Profile

Production Risk

Price Risk

Time

Cash Flow

Grade

Yield

EXPOSED

EXPOSED

COVERED

EXPOSED

COVERED

 

It Pays to Talk

The AWB Business Network will help you better understand the factors affecting the cash market and when is the best time to secure a fixed grade contract.

A contract can be negotiated over the phone, simply contact either your Local AWB Office or the Grower Service Centre on 1800 054 433

 

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