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Reach for AGG Stars to spread price risks
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Growers concerned about wheat prices coming into harvest can look to the sky for inspiration with the Australian Grain Growers’ Co-operative (AGG Co-op) aiming to catch shooting stars in the form of pricing opportunities if volatile markets allow.
After a successful campaign in 2016, the AGG Stars program is now open for contracting for the 2017 harvest.
Managing director Bruce McDonald said AGG Stars program consistently returned better net value than cash prices during harvest until the end of the program.
“With wheat prices as volatile as they are , it is important to take advantage of marketing opportunities if and when they arise,” he said.
“However, growers also need to be 100 per cent focused on their crop this time of year and if forecast production allows, AGG Stars could come in and we can help.”
AGG Stars will actively manage the marketing of wheat between August and April using commodity futures and options, managing foreign exchange and making physical sales to capture opportunities as they come to light.
“Stars is a good opportunity for growers to spread the price risk on some of their grain so they can focus on the getting the most from the growing season, with peace of mind of having professional marketers on the job,” he said.
Grower’s need a multigrade wheat contract to participate in AGG Stars. The standard wheat grades will be accepted at delivery or transfer and the program will be completed before the next season’s seeding operations. There are several payment options available for growers to match with cash flow requirements.
Tumby Bay grower Peter Swaffer was a participant in AGG Stars in 2016.
“We sold some wheat though AGG Stars because we liked the idea of marketing our grain over a longer period,” he said.
“In a tumultuous season for grain prices, we were happy with what the result, and I expect we will contract some grain through AGG Stars again this year.”
Program details can be found at agg.com.au or by calling 1300 943 244.
ENDS
For interviews: Bridget Penna, AgCommunicators, 0429 676 413
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Photo: Tumby Bay grower Peter Swaffer contracted with AGG stars to market his grain over a longer period.
Click on photo for high resolution image.
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