AWB 2018/19 Season Starter Pool October Update: Pre-harvest pool gives growers access to pre harvest market rally

A big benefit of pre-harvest wheat pools is the option it gives growers to participate in the market for longer and take advantage of favourable price movements over a year. This underscores the latest increase in estimated pool returns of between $3 and $8 a tonne we have announced for the 18/19 Season Starter pool across all port zones. We held back sales at the beginning of the pool in July but increased them through the major rally in domestic markets enabling our growers to benefit from this strength. We have not been overly active in the futures market with US wheat futures trading in a tight range through September and October. It is not unusual for US wheat futures to be lacklustre at this time of year and we will continue monitoring US developments and futures market opportunities as we head into our harvest. 

Looking ahead, harvest has kicked off in a few areas and physical prices have softened in response. The quality has been pleasing with a high percentage of hard wheat being produced in both the Geraldton and Northern SA growing regions. The east coast demand, which has been the driver behind the high prices over the last few months,  has abated for the time being while they wait for the grain to come to them. Finally, the Australian dollar has been stable at US70 cents and we see this consolidation as a positive sign leading us to only marginally increased our AUD/USD hedge. 

The pool aims to beat average port prices over the marketing period, providing growers with an early season alternative to selling at harvest. Our expert team manage basis, futures and currency on behalf of growers, using insights from Cargill’s network around the world. 

For information on other grades and site pricing, refer to the pool returns calculator for your portzone. 

The Season Starter pool is a popular marketing and price management product that allows grains growers to have experts actively market and manage their grain over a full twelve month period. It also enables growers to manage their cash flow and get access to production advances to help cover the cost of producing their current year’s crop.