An all-in-one pricing solution that provides you with a guaranteed minimum price for your grain prior to harvest, whilst seeking to enhance this by capturing futures market upside over a period of time.
Please check with your local AWB Territory Sales Manager about the availability of these products from 2019.
Confidence
of knowing your minimum outcome no matter which way the market moves.
Opportunity to enhance
your price by capturing futures prices above your floor, automatically over time.
Convenience
knowing your grain is priced automatically over time so you don’t need to monitor the market if you don’t want to.
Control
With the ability to reprice if you think the market has reached its peak.
Why use AWB Pacer Ultra?
Pacer Ultra is used prior to harvest when you want the certainty of a minimum price for your contracted grain, but you don’t want to be shut out of potential futures market rallies.
Pacer Ultra seeks to capture futures price upside over your chosen averaging period, so you don’t need to watch the market. You get a guaranteed minimum price plus the opportunity to enhance your price over time.
Put simply, if the market goes up, you participate. If the market goes down, you’re protected. Either way you have the confidence to plan ahead because your worst-case price is known from the beginning.
When might you use Pacer Ultra and how does it work?
Most growers would agree that it’s smart to make sales across the season. Pacer Ultra gives you both the confidence of a minimum price and a transparent way to participate in potential futures upside ahead of harvest.
Pacer Ultra is a pre-harvest contract where you set the parameters from the start. Your minimum price is determined by how long you stay in the market and your choice of futures floor price. Once you’ve chosen these parameters, that’s all you need to do.
Pacer Ultra seeks to enhance your price beyond your known minimum through a futures averaging mechanism, whereby no price in your average is below your chosen futures floor price
At the end of the averaging period we will let you know what your final contract price will be including any price enhancement.
So if you’ve got better things to do than watch the market over your averaging period, you don’t have to. But if you want to monitor the market, we send regular position reports, and if you think the market has peaked, you have the control 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 Pacer Ultra can work:
You choose Pacer Ultra and the following parameters;
Basis on the day is quoted at +$18/t and the cost (Structure Charge)is quoted at $14/t Your Minimum Contract Price
|
Your minimum contract price may be enhanced if the futures price trades above your futures floor price during the averaging period. Therefore, if the average futures price is calculated at $270/t Your Final Contract Price
The result is that you have a final price $10 above your minimum contract price. |
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 Pacer Ultra - 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.