An all-in-one pricing contract that puts you in control by providing you with the flexibility to fix futures and basis independently, in any order and in increments, enabling you to build your own contract price.
Control
to independently fix components of your grain price.
Flexibility
to fix components of your grain price in any order and in increments.
Convenience
of one contract, priced in Australian dollars to fix your grain price components.
Assurance
knowing that the price you build is the price you will get.
Why use AWB Basis PLUS?
By separating when you fix futures and basis, you have the opportunity to achieve a better final price than if you had simply sold for cash on the day.
Movements in futures and basis are not perfectly correlated. On any given day the market presents pricing opportunities. It may make sense to separate futures and basis and only lock away the component that you see value in on that day in order to try and achieve a better final price.
FIGURE 1 – EXAMPLE FUTURES AND BASIS PRICE MOVEMENT (AUD/t)
Basis PLUS provides you with the flexibility to independently fix futures and basis, in any order and in increments.
When might you use Basis PLUS and how does it work?
Basis PLUS is generally used as a pre-harvest contract so you need to have confidence in your production.
You have the control to price the futures component or the basis component in increments, in any order and at any time allowing you to build your own price.
Your local Territory Manager can quote you the current futures or AWB basis price in Australian dollars. You can lock in either component or simply leave us with a basis target order.
The price you build is the contract price that you will receive at delivery, less the known Basis PLUS fee.
It is important to note that separating your price into the two components introduces risk including that you may end up with a lower final price than if you had simply sold for cash on the day.
For more information about this product, including benefits and risks and applicable charges, please read the Product Disclosure Statement (PDS), any updated PDS, the Financial Services Guide and any general and special terms and conditions that may apply before you decide to acquire the product. You can get a copy of the PDS from our website at www.awb.com.au or by calling 1800 659 944
Please also note that the information above does not take into account your objectives, financial situation or needs and as such it is important that you seek professional financial and tax advice in relation to your particular circumstances.
Andrew Baldock's Basis PLUS Story
04 May. 2017
when it comes to getting the best price possible they use AWB's...
How to apply?
For more information or details on how to apply for any of our PRICE+ Risk Management products please contact:
- Your local AWB Representative, or
- Call AWB PRICE+ Risk Management on 1800 659 944, or
- E-mail AWB at [email protected]
More information on Basis PLUS - Download the Product Guide
Pacer Ultra®, the AWB name and logo are registered trade-marks of Cargill Australia Limited ACN 004 684 173.
Basis PLUS™. Market Ultra™ and Premium Offer™ are a trade-mark of Cargill Australia Limited ACN 004 684 173. All rights reserved.
Basis PLUS™, Pacer Ultra®, Market Ultra™ and Premium Offer™ are issued by Cargill Australia Limited ABN 42 004 684 173, Corporate Authorised Representative 410006 of Cargill Australia Financial Services Pty Limited ABN 24 103 594 823, AFSL 393967 (trading as AWB, “AWB”). This document does not take into account your objectives, financial situation or needs. It is important for you to consider these matters and read the Product Disclosure Statement (PDS), any updated PDS, the Financial Services Guide and any general and special terms and conditions that may apply to Basis PLUS™, Pacer Ultra®, Market Ultra™ or Premium Offer™ before you decide to acquire the product. You can get a copy of the PDS by calling 1800 659 944.
No company in the AWB/Cargill group guarantees the performance of any product or returns. Figures and amounts used in this document are not representations of past, present or future performance or market conditions. Past performance is not a reliable indicator of future performance. No representation or warranty, either express or implied, is provided in relation to the completeness of this document and it is not, nor is it intended to be a complete statement or summary of the product.