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WA Flexi-starter Pool

CBH Flexi-starter is an actively managed product for growers wanting to market their grain prior to the harvest period.
Three people in the background standing in a paddock with a newly emerged green crop

The CBH Flexi-starter Pool objective

With CBH Flexi-starter, growers can contract tonnes early in the growing season and adjust those tonnes higher or lower within a nominated timeframe, depending on how the season is progressing.

By leveraging CBH's supply chain and end-user networks, growers can access greater marketing opportunities and capture full margins for their grain. CBH's grain trading professionals manage price risk and market volatility with sophisticated risk management strategies.

Features

  • Interest Rate
    Interest Rate - 1.90%
  • Availability
    Available from June
  • Standard Grade
    Available for standard grade* wheat and feed barley
  • Minimum contract
    Minimum contract is 100 tonnes
  • Wheat
    Wheat - applicable grades will receive quality payments for protein, screenings and moisture
  • Delivery
    Delivery between 1 October – 31 December
  • Adjust your tonnage
    You can adjust your tonnage commitment by up to 30% from 2 - 6 August 2021. There is no tolerance on contract delivery.
* CBH reserves the right to include new grades introduced during the season to this product.
We offer five flexible payment methods to suit the needs of your farm business.

Past performance

The CBH Flexi-starter pool has delivered outstanding results in its first three years, outperforming the average cash price in all zones by between $10 - $40 per tonne.

  • View 2020-21 results

    11 May 2021

    The 2020-21 CBH Flexi-starter Pool recently finalised and returned another good result for participants.

    This is the third season we have run the Flexi-starter Pool, and pleasingly it has managed to deliver another strong result for participants. This season, the pool has delivered participants returns between $10-$14 above the average prices over the marketing window, with a similar outperformance when compared to the average of prices over the harvest period.

    Final Results

    These results are for APW1 FIS for each port zone.

    Zone Final Equity - APW1 FOB Average Qualtiy - APW1 FIS Total Equity - APW1 FIS
    Geraldton $348.52 p/t $4.70 p/t $332.92 p/t
    Kwinana $348.52 p/t $5.70 p/t $334.45 p/t
    Albany $348.52 p/t $5.00 p/t $331.83 p/t
    Esperance $348.52 p/t $3.80 p/t $329.81 p/t
    Geraldton zone

    APW1 GER outperformed average cash prices by $11.74 per tonne over the pool lifecycle. The chart below shows APW1 results.

    Kwinana zone

    APW1 KWI outperformed average cash prices by $10.67 per tonne over the pool lifecycle. The chart below shows APW1 results.

    Albany zone

    APW1 ALB outperformed average cash prices by $11.14 per tonne over the pool lifecycle. The chart below shows APW1 results.

    Esperance zone

    APW1 ESP outperformed average cash prices by $13.77 per tonne over the pool lifecycle. The chart below shows APW1 results.

    Pool Strategy

    Over the period the pool was able to capture elevation margins (premiums achieved by exporting the grain) which existed for a large part of the marketing window. This was through sending majority of sales into export markets, selling direct to key end-user customers and capturing full premiums for grain under management.

    On the flip-side, this strategy has meant the pool has been impacted by the supply chain challenges experienced more recently here in WA, however due to the accelerated nature of this pool it has not had a material impact on the result.

    *All figures mentioned above assume the distribution payment method and take into account S&H charges. Different payment methods may incur financial costs. Please check the Pool Calculator for full details. Cash price comparisons use Profarmer published cash price data.

  • View 2019-20 results

    21 May 2020

    The 2019-20 CBH Flexi-starter Pool recently finalised and returned a fantastic result for participants.

    The pool performed around $35-$40 per tonne better than the average cash price over the marketing window, and nearly $15-20 per tonne better than the average of cash prices over the harvest period.

    Using Kwinana zone as an example, the final pool result was better than the cash price prevailing for 93% of the daily observations, meaning for a grower to achieve the same or better outcome they would have had to sell grain on the 7% of days the cash price was better than the pool result.

    2019 was the second year CBH offered the pre-harvest pool, and both years have seen excellent returns to growers.

    Final Results

    These results are for APW1 FIS for each port zone.

    Zone Final Equity - APW1 FIS Average Qualtiy - APW1 FIS Total Equity - APW1 FIS
    Geraldton $370.82 p/t $6.35 p/t $377.17 p/t
    Kwinana $371.39 p/t $5.70 p/t $377.09 p/t
    Albany $369.52 p/t $5.30 p/t $374.82 p/t
    Esperance $368.72 p/t $5.30 p/t $374.02 p/t
    Geraldton zone

    APW1 GER outperformed average cash prices by $38.39 per tonne over the pool lifecycle. The chart below shows APW1 results.

    Kwinana zone

    APW1 KWI outperformed average cash prices by $37.06 per tonne over the pool lifecycle. The chart below shows APW1 results.

    Albany zone

    APW1 ALB outperformed average cash prices by $37.93 per tonne over the pool lifecycle. The chart below shows APW1 results.

    Esperance zone

    APW1 ESP outperformed average cash prices by $40.00 per tonne over the pool lifecycle. The chart below shows APW1 results.

    Pool Strategy

    CBH undertook a delayed selling strategy to take advantage of potential post-harvest tightness and was able to capture the benefit of favourable currency and commodity price movements as the season progressed.

    *All figures mentioned above assume the distribution payment method and take into account S&H charges. Different payment methods may incur financial costs. Please check the Pool Calculator for full details. Cash price comparisons use Profarmer published cash price data.

  • View 2018-19 results

    24 April 2019

    The 2018-19 Flexi-starter pool has been finalised and all remaining equity has been paid to participants of the pool.

    This was the first year that CBH has run this product and the final result is a great outcome for participants, once again demonstrating the benefits of using pools as part of a well-diversified grain marketing strategy to spread your income and risk.

    Final Results

    These results are for APW1 FIS for each port zone.
    Zone Final Equity - APW1 FIS Average Qualtiy - APW1 FIS Total Equity - APW1 FIS
    Geraldton $354.94 p/t $4.70 p/t $359.64 p/t
    Kwinana $355.11 p/t $5.80 p/t $360.91 p/t
    Albany $353.24 p/t $4.50 p/t $357.74 p/t
    Esperance $352.44 p/t $4.20 p/t $356.64 p/t
    We've also included the results for ASW1 FIS for each port zone as the majority of tonnes in the pool were ASW1.
    Zone Final Equity - APW1 FIS Average Qualtiy - APW1 FIS Total Equity - APW1 FIS
    Geraldton $342.94 p/t $5.00 p/t $347.94 p/t
    Kwinana $343.11 p/t $5.90 p/t $349.01 p/t
    Albany $340.41 p/t $4.70 p/t $345.11 p/t
    Esperance $340.44 p/t $3.90 p/t $344.34 p/t
    Geraldton zone

    APW1 GER outperformed average cash prices by $11.48 per tonne and ASW1 by $14.51 per tonne over the pool lifecycle. The chart below shows APW1 results.

    Kwinana zone

    APW1 KWI outperformed average cash prices by $6.84 per tonne and ASW1 by $12.85 per tonne over the pool lifecycle. The chart below shows APW1 results.

    Albany zone

    APW1 ALB outperformed average cash prices by $8.30 per tonne and ASW1 by $13.51 per tonne over the pool lifecycle. The chart below shows APW1 results.

    Esperance zone

    APW1 ESP outperformed average cash prices by $10.65 per tonne and ASW1 by $14.86 per tonne over the pool lifecycle. The chart below shows APW1 results.

    Pool Strategy

    The strategy for the pool included utilising the track market for pre-harvest sales. This proved quite effective with the pool achieving some good levels for sales, which supported a solid final result.

    The pool benefited from the strategy of delaying ASW sales until the post-harvest period as much as possible. Whilst spreads pushed out to around a $40 discount for ASW at stages when the APW price was peaking, the pool was able to deliver a much better outcome to participants by utilising tonnes on export vessels and taking advantage of the narrowing spread post-harvest. This was important since ASW tonnes made up the majority of the pool tonnes this season.

    *All figures mentioned above assume the distribution payment method and take into account S&H charges. Different payment methods may incur financial costs. Please check the Pool Calculator for full details. Cash price comparisons use Profarmer published cash price data.

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