Market Ultra provides you with 100% payment of your minimum price at delivery, whilst staying in the market to potentially enhance your price over a period of time.
Please check with your local AWB Territory Sales Manager about the availability of these products from 2019.
Security
of a known minimum price and cash flow on delivery.
Opportunity
with the ability to enhance your price beyond your known minimum.
Convenience
by participating in upside over time so you don’t have to worry about watching the market.
Reduced Cost
by selling at delivery, you are eliminating the costs of holding grain.
Why use AWB Market Ultra?
Market Ultra gives you the best of both worlds as you get your minimum price paid when you deliver at harvest and still stay in the market to seek to benefit from futures rallies.
You are able to sell your grain and get cash in your pocket on delivery, protecting you from any fall in the cash price, while avoiding ongoing storage and interest costs associated with holding grain. You also have the opportunity to receive an additional payment via the futures averaging mechanism.
Market Ultra provides a transparent way to automatically capture futures prices at or above your chosen futures floor price.
When might you use Market Ultra and how does it work?
Most growers would agree that it’s smart to make sales across the season. Market Ultra gives you a safe and transparent way to access futures markets during the post-harvest selling window. If you have the grain, there is no production risk.
You set the parameters. Your minimum price is determined by how long you choose to stay in the market and your choice of futures floor price. Once you have chosen these parameters, that’s all you need to do.
If you’ve got better things to do than watch the market over your averaging period, you don’t have to. Each day during your chosen averaging period, the higher of either the futures settlement price or the Futures Floor Price is used to calculate your average futures price. If your average is above the futures floor you will receive an additional payment.
If you want to actively monitor the price, you can follow the progress of it. We send regular position reports, and if you think the market has peaked, you have the ability to re-price.
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.
Example of how Market Ultra can work:
You choose Market Ultra with the following parameters;
Today’s cash price is quoted at $263 and the Market Ultra cost (Structure Charge) is quoted at $13/t Your Minimum Contract Price
Paid when you deliver under the contract payment terms. |
You may receive an additional payment if the futures settlement prices are above your chosen futures floor price during your averaging period. Therefore, if the average futures price was $265 Your additional payment
you would be paid an additional $5/t within 14 days of the last day in the averaging period. |
The above example is a hypothetical only and does not cover all scenarios (including repricing). You should not act on this information alone. Figures and amounts used are not representations of past, present or future performance or market conditions.
Drew Penberthy's Pacer Ultra and Market Ultra Story
05 May. 2017
After months of hard work to grow the best crop, Drew wants the best price for his product and turns to AWB’s PRICE+ Pacer Ultra and Market Ultra products.
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 Market Ultra - Download the Product Guide
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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.