Wheat futures hit A$300 a tonne. Growers lock in 2020/21 forward contracts.
Wheat futures have hit A$300 a tonne (CME December 2020) providing a rare opportunity for growers to start to forward price at these high levels. Prices spiked on the back of news that Russian exports for the current season may be lower than levels estimated by the USDA. This would potentially push greater demand to the US, supporting strength in wheat futures.
Many growers are seizing the opportunity presenting from this rally using a popular forward contracting product called Basis PLUS. This gives growers the flexibility to fix the futures component of a wheat contract when the price is favourable. The basis price component of the contract can be fixed at a later date.
Typically forward contract products, like Basis PLUS, allow growers to control and build the price they want for their wheat. By acting well in advance, they can cherry pick the best prices over a period of time to incrementally build the price they want.
Growers registered for Basis PLUS receive notifications of movements in the futures market, giving them notice to act. For more on Basis PLUS
Originally published 30 August, 2018
For further information call the AWB Grower Service Centre - 1800 447 246
Introducing Nicholas Robertson, Central Victoria Territory Manager
I love that agriculture is more than just a job for farmers, ‘it is their livelihood and passion and a way of life passed down from their forefathers’.Read More
AWB 2017/18 Harvest Pool August EPR update
AWB today are pleased to announce a 2017/18 Harvest Pool estimated pool return for the 21st August 2018.Read More
AWB 2018/19 Season Starter Pool August Update
AWB today are pleased to announce the estimated returns have increased by between $13 and $22 per tonne for the 2018/2019 Season Starter Pool. The increase in returns have been driven by...Read More
Introducing David Cripps, Geraldton Territory Manager
One of the things I love most about agriculture is the people. I think living and working in the agriculture business brings you into contact with great people who are passionate about what they do and that’s what makes agriculture special.Read More