Frequently Asked Questions

GrainCorp Pools Contact Information

GrainCorp Pools have created the following to assist answering Frequently Asked Questions in accordance with the Grain Trade Australia Operating Standards for Grain Pool Providers.

 

For further information, please contact your local GrainCorp Merchant or email pools@graincorp.com.au or visit the pools page for your state to access the full terms and conditions.
Does GrainCorp Pools have the appropriate skills to manage a Pool?

GrainCorp has over 16 years’ experience as a Pool provider. Our Pools are managed by a team of experts who ensure that the Pools performance is in line with the objectives of each Pool.

 

The strategy of each Pool is developed through in depth analysis of export and domestic markets, demand modelling compiled by our global team, price risk management and extracting value for growers at every stage of the supply chain.

What strategy is adopted by GrainCorp Pools?

GrainCorp has a consistent strategy of protecting initial pool equity, whilst maintaining participation through the life of the pool to add value to the equity of the pool, market conditions permitting.

How are sales conducted for the three pools?

The sales strategy and program of each pool will be amended to reflect the season and market conditions, but will always remain true to the objectives of the Pool.

 

Example:

If market dynamics were to change and short term prices became stronger relative to longer term market conditions, it would be to the advantage of our Pool participants that the volume of grain be sold to secure the short term increases. This would benefit participants by capturing higher prices and reducing the cost of carry incurred.

Where can I deliver to GrainCorp Pools?

QLD, NSW and VIC: The Pools are open for delivery in all port zones across the GrainCorp network. Plus, on an Ex-Farm and Delivered basis.

SA: The Pools are open for delivery at all Viterra sites accepting grain (SA Only). Plus, on an Ex-Farm and Delivered basis.

WA: The Pools are open for delivery at CBH sites accepting grain (WA Only).

Who can participate in GrainCorp Pools?

Our Pools are run only to benefit growers. Trade customers are not permitted to deliver to GrainCorp Pools.

 

GrainCorp Pools payment structure and transparent pricing for informed decisions.

What payment options are offered by GrainCorp Pools?

Each Pool offers different payment options, designed to align with your seasonal operations.

 

Harvest payments are paid 5 days from end of delivery week.

 

PAYMENT SCHEDULE

Pre-Harvest Optimiser

Harvest Advanced

Harvest payment of 70% (FOB value less full costs) with the balance paid in July.

 

Distribution

Harvest payment of 60% FOB value in April with the remainder paid in July.

 

Deferred

100% payment in July.

 

PriceGuard PLUS

Quick Payment

Guaranteed Minimum Return paid 5 days* plus top-up payment in October.

 

Deferred Payment  

Guaranteed Minimum Return paid in July plus a top-up payment and interet paid in October

 

Combined Payment

Guaranteed Minimum Return plus a top-up payment and interest paid in October.

 

Harvest 10

Harvest Advanced

Harvest payment of 70% (FOB value less full costs) with balance paid in October.

 

Quarterly Distribution

Quarterly payments throughout the marketing period - 25% at harvest, 50% in April, 75% in July and 100% in October

 

Deferred Payment

All payments are post 30 June. 75% July with the remainder paid at finalisation in October.  

 

 

Please refer to the website for full terms and conditions.

How and when are payments reconciled?

Payments are reconciled weekly to ensure no payments are missed.

Our payment application is directly linked with your NGR which enables your details to be updated overnight.

Are fees and costs charged to each pool?

Our GrainCorp Pool Calculator allows you to view transparent pricing and feeshttp://graincorp.com.au/calculator

 

The calculator assists estimate Pool management costs associated with a particular Pool and allows you to select a site, commodity and grade to determine an Estimated Site Return (ESR).

 

In addition to the calculator we encourage all growers to read all documentation relevant to the provision of grain Pools before committing to a pool.

 

Full terms and conditions are contained in all our Pool contracts and are also available on the company website.

Do you provide fixed grade spreads?

 

GrainCorp doesn’t provide fixed grade spreads.

Does the pool have a cooling off period after committing to the Pool?

GrainCorp Pools do not have a coolingoff period. You can access transparent pricing and fees to make an informed decision on the GrainCorp Pools Calculator http://graincorp.com.au/calculator

What are GrainCorp Pools early commitment options?

The Pre-Harvest Optimiser Pool is GrainCorp’s option for early commitments and is managed separately from all pools. The aim is to capture any market ‘up‐side’ that may be present before harvest commences.

The Pre-Harvest Optimiser lets you minimise risk with the peace of mind of a $25/mt capped washout (details set-out in terms and conditions) should you experience production failure.

When weighing up your early commitment options you should determine if:
• An early commitment ‘premium’ will be translated into a higher price at the completion of a pool,
• That the final pool return is not discounted to provide for such a ‘premium’, or
• That any such ‘premium’ is not eroded by undisclosed fees or interest charges.


GrainCorp Pools active risk management.

How do GrainCorp Pools actively manage risk?

GrainCorp Pools risk management and corporate governance policies are designed to provide maximum protection by using a sophisticated and proven combination of currency management, hedging and counterparty safeguards.

 

GrainCorp Pools is accountable to the GrainCorp Position and Trading Risk Management Policy. The Policy involves a daily position report and credit limit reporting. Compliance with this policy is closely monitored by both Group Treasury and the General Manager – Marketing. Robust risk management determines the percentage required to be hedged based on local flat price grain values.

 

Risk position is evaluated daily through daily position report which is co-signed by the Pools Trader and Group Treasury.

 

GrainCorp Pools is accountable to the GrainCorp compliance policies. Risk/compliance reporting for the Pool sits within Group Treasury at GrainCorp, not within the Pool team itself. Management of all price risk sits with the Pool Manager.

Is the pool externally audited?

 

GrainCorp is an ASX listed company and subject to statutory accounting and auditing provisions. The GrainCorp Pools financial accounts are part of the annual external audit carried out on GrainCorp each year.

How is separation between individual Pools maintained (wheat, barley etc)? And does this separation extend to individual grades within Pools and cash purchases from growers?

Yes, GrainCorp manages each Pool individually.

 

As a guide, each pools has:

-      Fully independent bank accounts and futures accounts

-      Separate legal entity

-      Fully reconciled stock account

-      Fully reconciled financial statements

-      Internal market access audit and Service Level Agreement with GrainCorp marketing.

 

There is no cross subsidisation between pools of different commodities, regions, or pool types (PreHarvest Optimiser, Harvest 10, PriceGuard Plus).

How are internal party transactions handled?

GrainCorp Pools and GrainCorp Marketing are managed independently of each other with individual stock positions, hedging, currency and bank accounts.

 

When GrainCorp Pools chooses to transact with GrainCorp Marketing it is because that transaction results in the best value for GrainCorp Pools on the day.

 

Transactions between GrainCorp Pools and GrainCorp Marketing are audited against Bloomberg reported markets to ensure suitable market participation and value is being afforded to GrainCorp Pools through transactions with GrainCorp Marketing. The audit is undertaken by GrainCorp’s Group Financial Controller and is presented to the Business Review Committee on a twice yearly basis.

What risks are associated with Pools?

GrainCorp Pools are a low risk way to sell grain and manage market variability.

 

Reward is always a function of risk, and the flexibility to participate in markets also involves exposure to some downside risk. We aim to limit these risks, while maximising reward.

 

We calculate the risks that each Pool is exposed to and determine the strategy based on the available information.

 

We use derivative options and futures on international and local exchange markets. When buying or selling grain in foreign currency, we trade the currency to offset the exposure from the underlying or derivative trade.

 

What risk mitigation tools are used by the Pool provider?

GrainCorp Pools has a Trading Risk Management policy that involves a daily position report, credit limit reporting and pre-determined hedge limits.

The Pools manager bi-annually reports to the Board of Directors upon open and closure of the pool. This involves both complete information and financials about each individual Pool product.

 

 

GrainCorp Pools Terms and Conditions.

What are my rights and obligations in committing to the Pool?

Your rights and obligations are detailed in our terms and conditions which are contained in all our Pool contracts and are also available on the company website.

 

We encourage all growers to read all documentation relevant to the provision of grain Pools before committing to a pool.

 

If you are not sure what the Pool terms and conditions mean, or what obligations you assume as a Pool participant, you should contact your nearest GrainCorp Merchant, or speak with your financial or taxation advisor.

 

What are your complaint handling procedures?

As a participant in any GrainCorp Pool you are able to discuss any problems or complaints you have with your local GrainCorp Merchant, or directly with the GrainCorp Pools management team.  

 

 

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