What is a Deferred Delivery Contract?
A Counterparty may enter into a Deferred Delivery Contract with AWBIN before or during harvest to deliver Wheat (of a particular Bin Grade) into the National Pool at a future date (including after the Pool Closure Date).
Why enter into a Deferred Delivery Contract?
Deferred Delivery Contracts provide flexibility for Growers and other Counterparties, and help AWBIN in managing risk components of the National Pool.
A Counterparty might enter into a Deferred Delivery Contract with AWBIN for any of the following reasons:
-
to guarantee delivery into the National Pool (even if a Counterparty is unable to physically deliver Wheat until after the Pool Closure Date)
-
to coordinate the delivery of Wheat with the receival of other goods such as fertiliser (for example, by facilitating "back haul" arrangements to reduce transport costs)
-
to obtain cheaper freight rates after harvest when demand for rural transport has subsided
-
to avoid congestion at Sites during harvest and increase the efficiency of delivery of a Grower's harvest (for example, by reducing truck turnaround times).
Authority to enter into a Deferred Delivery Contract
The National Pool Swaps Merchant and Growers Services representatives are each authorised to enter into Deferred Delivery Contracts on behalf of AWBIN.
AWBI will only enter into Deferred Delivery Contracts for delivery of up to a maximum of 20,000 tonnes of Wheat in a Season from one Counterparty (or a Related Body Corporate of that Counterparty).
Standard terms for all Deferred Delivery Contracts
A Counterparty must specify the following matters in any offer to enter into a Deferred Delivery Contract with AWBIN.
(Delivery Date) For delivery of Wheat by In-Store Transfer, the Counterparty must nominate a two-week period in which it will deliver Wheat under the Deferred Delivery Contract.
For delivery of Wheat from off-Site, the Counterparty must nominate a 6 week period in which it must deliver Wheat under the Deferred Delivery Contract.
The Delivery Date must not be after 31 August (31 July for deliveries in Queensland) in the year after the Season commences.
(Site) The Counterparty must nominate the Site.
(National Pool Payment Option) The Counterparty must nominate a National Pool Payment Option.
(Bin Grade) The Counterparty must nominate the Bin Grade it will deliver. AWBIN will accept delivery of Wheat that is one Bin Grade below or one Bin Grade above the Bin Grade that the Counterparty nominated (or with a tolerance agreed by AWBI and the Counterparty as specified in the Deferred Delivery Contract).
(Tonnage Spread) AWBIN will specify the tonnage spread in the Deferred Delivery Contract.
Price
Price according to Pay Grade
The Counterparty will be paid on the basis of the Pay Grade of the Wheat applicable at the Site at which the Wheat is delivered (with adjustments under the Golden Rewards Payment Scale).
Washout fee
The Counterparty must pay a washout fee of $7.50 for each of tonne of Wheat that it does not deliver within the agreed delivery period.
Ticket-by-Ticket Policy and In-Store Transfer Policy
A Counterparty to a Deferred Delivery Contract must comply with the Ticket-by-Ticket Policy and, where applicable, the In-Store Transfer Policy.
Review of this policy
This Deferred Delivery Policy may be amended by AWBIN at any time without notice. AWBIN will use reasonable endeavours not to amend this policy during harvest.
Procedure
Contacting AWBIN
If a Counterparty wants to enter into a Deferred Delivery Contract, it should contact the National Pool Swaps Merchant or Grower Services.
Agreement of variable terms
The Counterparty may make an offer by telephone or email to the National Pool Swaps Merchant, (or Grower Services) to enter into a Deferred Delivery Contract with AWBIN. The offer must comply with section 0 of this policy.
The Counterparty and the National Pool Swap Merchant (or Grower Services representative) will negotiate the terms of the Deferred Delivery Contract by telephone or email.
Execution of Deferred Delivery Contract
Once the Counterparty and the National Pool Swap Merchant (or the Grower Services representative) have agreed upon the terms by telephone or email, the National Pool Swap Merchant (or the Grower Services representative) sends AWBIN's standard Deferred Delivery Contract (including the agreed variable terms) to the Counterparty for execution.
The Counterparty executes the Deferred Delivery Contract and returns it to the National Pool Swap Merchant (or a Grower Services representative) who will execute the Deferred Delivery Contract on behalf of AWBIN.
Delivery
When the Counterparty delivers Wheat pursuant to a Deferred Delivery Contract, the Counterparty must provide the Receival Agent with the Deferred Delivery Contract number.
Payment
The method and timing of payment depends on the terms of the National Pool Payment Option specified in the Deferred Delivery Contract.
To view AWBIN's Deferred Delivery Contract and Term and Conditions please click on the relevant link
Deferred Delivery Contract (PDF, 71Kb)
Deferred Delivery Contract Terms and Conditions (PDF, 38Kb)
With free Acrobat Reader® software, you can view, download and print PDF files.
Top of Page