| ||AWB Pacer Index 4 Take the pressure out of predicting the cash market|| ||
AWB today launched a new wheat marketing option – AWB Pacer Index 4 –which is designed to keep pace with the cash wheat market by spreading sales evenly over a four month marketing window.
AWB’s Richard Williams said: “The AWB Pacer Index 4 will be available to wheat growers on the East Coast and in South Australia this harvest and will seek to achieve cash sales with the best return throughout each month.”
“AWB Pacer Index 4 takes the pressure out of predicting the cash market post-harvest as sales are spread out evenly over a four month marketing window,” Mr Williams said.
“AWB Pacer Index 4 is available in the majority of port zones on the East Coast and South Australia for the main wheat grades and, beginning in January 2014 approximately 25% of committed wheat will be sold systematically each month into the market.
“Participating in a structured sales program into one of Australia’s largest domestic marketing networks removes the pressure of trying to predict the market. With two flexible payment options AWB Pacer Index 4 provides wheat farmers with a product which can diversify their risk and deliver 100% of cash flow by July or sooner depending on the payment option selected,” Mr Williams said.
AWB has already introduced new products this year and we’re planning further changes to help farmers diversify and simplify their marketing program and apply a portfolio approach to grain marketing.
East Coast and South Australian wheat farmers can enter into the AWB Pacer Index 4 through a tonnage commitment contract with their local AWB representative, direct deliver at harvest or warehouse transfer into the program after delivery.
Distributions are typically paid within 15 days after the end of the sales month.
AWB Pacer Index 4 provides security of payment and will be independently audited prior to finalisation of the program.
Term and conditions, acceptable wheat grades, delivery sites and port zones are available on the AWB website.
Media contact: Peter McBride – 03 9268 7362 or 0417 662 451