No. 1 Canola Pool is closed
Marketing and Trading have closed the No.1 Canola Harvest Pool in order to protect the equity of the pool and the value for participants.
Those with a Guaranteed Access Contract will still have guaranteed access to the No. 1 Pool.
The commitments to the pool have reached levels that match the pool’s ability to support the current published equity levels. Accepting further tonnage into the No. 1 pool risks materially diluting pool equity for existing participants.
The No. 2 Canola Harvest Pool will be available to growers on Monday 22 November, and we encourage growers to consider this in their marketing options.
The No. 2 Pool will have a lower starting equity reflecting the increased risk of having to carry the tonnes and execute later in the year, thereby being more exposed to the price impacts of increased competition later in the year. This does not mean the No. 2 Pool will deliver a lower final return, as this will ultimately be determined by the market environment over the pool marketing period. The lower initial equity is simply a current reflection of the increased risks of managing the pool into this environment.
We will continue to monitor the other Harvest Pools and close them if we believe there is risk to the equity of the pool. For questions regarding CBH’s Pools, speak to your local Business Relationship Manager or call the Grower Service Centre.
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Why is the canola pool closing?
The No.1 Canola Harvest Pool has closed in order to protect the equity of the pool and the value for participants.
The commitments to the pool have reached levels that match the pool’s ability to support the current published equity levels. Accepting further tonnage into the No. 1 pool risks materially diluting pool equity for existing participants.
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Why are pools so attractive right now?
This season has presented some unique market factors which have resulted in a high level of interest for CBH’s harvest pools.
CBH’s pools allow growers the opportunity to participate in all market opportunities that CBH has access, with all value flowing back to the pool over the period of its operation.
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What about the value of the second pool?
The No. 2 Pool will have a lower starting equity reflecting the increased risk of having to carry the tonnes and execute later in the year, thereby being more exposed to the price impacts of increased competition later in the year.
This does not mean the No. 2 Harvest Pools will deliver a lower final return, as this will ultimately be determined by the market environment over the pool marketing period. The lower initial equity is simply a current reflection of the increased risks of managing the pool into this environment.
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When will the second pool open?The No. 2 Canola Harvest Pool will open on Monday 22 November. As other pools close, No. 2 Harvest Pools will be made available with details being made available at that time
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When was the last time CBH closed a pool?
CBH closes its pools each year on careful consideration of market factors to protect the equity of the initial participants.
While it is unusual to have closed a No. 1 Harvest Pool this early in the season, it’s not unprecedented for CBH to offer a No. 2 Pool in years where there is strong demand from growers.
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Is the reduced shipping capacity impacting availability of pools?
This year, the large size of the crop combined with strong international demand has led to available shipping capacity being quickly booked.
If CBH continued to accumulate tonnes into the No. 1 Harvest Pool it increases the risk of carrying these tonnes and executing later in the year, thereby being more exposed to the price impacts of increased competition later in the year.
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Need help?Your local Business Relationship Manager is on hand to help you with setting up and managing your grain sales, products or if you have any questions.
