Protection Plus WA 2015/16
The ProtectionPlus Pool is a wheat pool that secures a growers bottom line first, then uses low risk option strategies to gain benefit from price rallies.
It offers growers increased confidence, early in the season of a minimum return for their wheat, by targeting a protection price in the event of a market downturn. The advantage is that the ProtectionPlus Pool is designed to participate in positive market movements, with upside potential.
The ProtectionPlus Pool is jointly managed by the dedicated teams at CBH Group and Plum Grove; grain trading and marketing professionals who analyse the wheat every day.
CBH markets and sells the physical wheat, providing growers security of payment through CBH Grain Pty Ltd.
| Albany | Esperance | Geraldton | Kwinana | |
|---|---|---|---|---|
| H2 | $319.76 | $318.90 | $319.75 | $321.79 |
| APW1 | $313.76 | $312.90 | $313.75 | $315.79 |
| APW2 | $310.76 | $309.90 | $310.75 | $312.79 |
| AUH2 | $305.76 | $304.90 | $305.75 | $307.79 |
| ASW1 | $307.76 | $306.90 | $307.75 | $309.79 |
| AGP1 | $295.76 | $294.90 | $295.75 | $297.79 |
| FED1 | $269.76 | $268.90 | $269.75 | $271.79 |
| ANW1 | $335.76 | $334.90 | $335.75 | $337.79 |
| ANW2 | $325.76 | $324.90 | $325.75 | $327.79 |
Important Information & Features
| Manager | Plum Grove & CBH | Ring-Fenced | Yes, managed independent of all other trading activities. |
| Acquirer Code |
Contract Required |
More Information |
Payments
| Harvest | January 2016 | April 2016 | July 2016 | |
|---|---|---|---|---|
| Distributions | 40% Distribution | 60% Final Distribution | ||
| Harvest / Flexi Loan | 80% Loan | 20% Final Payment | ||
| Advance | 75% Advance | 25% Final Payment | ||
| Deferred | 100% Final Payment |
Each payment will be less proportional costs.
Finalisation
The pool finalisation date in April aligns the pool lifecycle with the hedging plan to pay growers sooner. The deferred payment option is available with a 100% distribution in July.
| Albany | Esperance | Geraldton | Kwinana | |
|---|---|---|---|---|
| H2 | $319.76 | $318.90 | $319.75 | $321.79 |
| AUH2 | $305.76 | $304.90 | $305.75 | $307.79 |
| APW2 | $310.76 | $309.90 | $310.75 | $312.79 |
| APW1 | $313.76 | $312.90 | $313.75 | $315.79 |
| ASW1 | $307.76 | $306.90 | $307.75 | $309.79 |
| AGP1 | $295.76 | $294.90 | $295.75 | $297.79 |
| FED1 | $269.76 | $268.90 | $269.75 | $271.79 |
| ANW1 | $335.76 | $334.90 | $335.75 | $337.79 |
| ANW2 | $325.76 | $324.90 | $325.75 | $327.79 |
Objective
The objective of the ProtectionPlus Pool is to protect a target price while capturing potential upside with the use of option-based strategies.
How to Commit
The ProtectionPlus Pool is typically open from one to five days in the April to July period on an annual basis. Plum Grove and CBH Group will look to open the 2015/16 offering from July 2015 onwards.
Call CBH or Plum Grove to discuss your options.
