AvantAgri Australia have announced a second round of pools for the 2016-17 harvest, based on their flagship M6 (6 month) and AAM (9 month managed) pool programs.
Both pools were closed on today (January 13), with second tranches of both pools opened immediately.
Managing director Peter Woods said it was necessary to close of the pools that were opened in November, to protect equity for those who delivered early in the harvest period.
“At the same time, it is important to have a pooling option still open for growers who have been caught with a long and protected harvest,” he said.
“We expect there to be a need for pooling products much later into the year than normal because of the big crop, rain delays to harvest, and the low price levels confronting growers.”
The MP6 pool involves marketing the grain over the northern hemisphere growing season, with the aim of capturing any market moves associated with waxing and waning growing conditions across Norther America, Europe and the Black Sea.
Payments are also finalised in June, delivering 100 per cent of the cashflow during the current financial year.
The AvantAgri Managed Pool is finalised in September.
It is better placed to capture any gains from actual production issues in the northern hemisphere wheat and corn crops, which often flow through the markets in July and August if they unfold.
Payments for the AAM also deliver 50pc of the income and cashflow this financial year, with the other half being paid over the July to September period.
Earlier in January, AvantAgri launched a pool being run over two seasons (the AAMX), for those wanting to get exposure to two northern hemisphere seasons for the grain marketing program, without having the costs and logistics of having to hold physical grain for that long.