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.

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.

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]