Home' AWB Marketing Guide : Marketing Guide 2014 Contents 22.
2014/15 AWB MARKET ADVANTAGETM (NPE)
CONTRACTING PERIOD AND LOCATIONS
• Available in all states
• Contracting from October 2014 to
• Customers have until 31 May 2015 to
finalise the pricing of their contracts
COMMODITIES AND GRADES
Current season crop – major grades of:
CONTRACT GRADE SPREADS
• Multi grade and fixed grade spreads
• Premiums apply for Canola AOF
At Delivery, customers will be advanced
60% of the Advance Price for each tonne
that has not had a final price set.
ESTABLISHING A FINAL PRICE
Minimum amount = 100 tonnes, up to
a maximum of three pricing events per
MINIMUM CONTRACT SIZE
FEE PER TONNE (excl GST)
• Canola $5
• Wheat and Barley $3
AWB reserves the right to withdraw the
product from sale at any time. All applicable
grades and other contracting information
can be found at awb.com.au.
At contracting you agree an Advance Price with AWB based on the commodity, quality
and delivery location. At delivery you will be advanced 60% of the Advance Price.
You then have until 31 May 2015 to finalise your price, where at that time you will receive
(or pay) the difference between the advance amount and the final price for your grain.
The AWB Market Advantage offers four clear benefits:
1. PRICE WHEN YOU WANT TO 1
Looking to take advantage of any post-harvest rally? The NPE in the name stands for
No Price Established meaning you have from the date of contracting until the final pricing
date to set the price according to your marketing strategy.
You control when you price your grain. This can be done a number of ways:
• Pricing in one lot post-delivery by the final pricing date
• Price up to three lots (each a minimum of 100T) at different times, pre and/or post-
delivery, up to the final pricing date
2. THE ASSURANCE OF A COMPETITIVE PRICE PROMISE 2
AWB aims to provide growers with market competitive pricing following their grain
delivery with Market Advantage.
Growers can request a new bid if AWB’s price at their contracted delivery location is
lower than other Major Traders publicly advertised bid at that location for the same
quantity/quality of grain at the time the grower wants to finalise a price.
AWB will match the average of the top 3 Major Traders bids at your contracted delivery
location on that day.
3. UNLOCK YOUR CROPS VALUE SOONER
Why place your crop in storage and not receive anything for it, while you wait for the price
you want? With an AWB Market AdvantageTM you can get access to the value in your
grain sooner through receiving an advance, while still retaining the pricing flexibility you
4. PROTECT AGAINST PRODUCTION RISK WHILE KEEPING YOUR OPTIONS OPEN 3
Forward contracting can provide a range of benefits, but can be stressful if you are
concerned about production risk. AWB Market AdvantageTM can help reduce the stress. If
you have a verified production failure due to certain adverse weather events and cannot
deliver to your contract, washout costs will only apply to those tonnes for which you have
established a final price for prior to delivery.
1. To the extent that you do not establish a final price for your grain before the final pricing date, we will
establish the final price for that grain at our sole discretion and that price will be used to calculate the
amount you will receive (or pay) in relation to that grain.
2. As holder of an AWB Market AdvantageTM contract it is your responsibility to inform AWB of publicly
advertised competitor major trader bids and request an alternate quote. Once you have accepted AWB’s
quote the price is finalised and there will be no changes. Major traders are defined as those traders holding
GTA Trading Membership level A1, A2, A3, A4, B1, B2 (www.graintrade.org.au/membership).
3. Production failure must be verified by an AWB representative. Product fees may still apply. Please refer to
the Market AdvantageTM Terms and Conditions for classification of adverse weather events.
ACCESS CASH AT HARVEST WHILE RETAINING THE FLEXIBILITY TO PRICE YOUR GRAIN LATER
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