Indicative Pool Prices

Transcription

1 Week ending 19 January 2017 By Carla Keith and Cathy Kelly, QSL Industry Relationship Managers Carla Ph Cathy Ph Indicative Pool Prices The table below provides an overview of the QSL Pool Prices Matrices available at All prices quoted are indicative only and do not include an allocation from the QSL Shared Pool. Growers should always consult their mill for information about their individual cane payments.

2 QSL Market Snapshot Read this week s QSL Market Update here. QSL updates the indicative prices for 2016, 2017, 2018 and 2019 Seasons daily. The graph below tracks ICE #11 movement for the 2016 Season. Indicative Prices as at 19 January 2017 Source: Bloomberg. Published

3 2017 Season QSL Pricing and Pool Options In 2017, QSL will continue to offer Growers a range of pricing pool options including QSL-managed in-season and forward season pools and a variety of Grower-managed pricing products. The tables below provide an overview of these options. QSL-managed Pools : QSL makes pricing decisions on behalf of Growers. QSL Guaranteed Floor Pool QSL Actively Managed Pool QSL 2-Season Forward Pool (2018 Season) QSL Harvest Pool A Committed Sugar Pool which provides a guaranteed minimum return with the potential for higher returns across the season. The minimum tonnage required to participate in this Pool is 50 metric tonnes. Growers using this option can expect to receive 90% of the value of the Pool s completed pricing by the end of crushing of the relevant season. A Committed Sugar Pool which targets the best return over the season by pricing more frequently as short-term market opportunities arise. The minimum tonnage required to participate in this Pool is 10 metric tonnes. A Committed Sugar Pool with pricing undertaken across the 2017 and 2018 Seasons. This pool aims to target the best return, with some pre-set price triggers. The minimum tonnage required to participate in this pool is 1 ICE 11 futures contract lot ( metric tonnes). An Uncommitted Sugar Pool which is designed to manage possible production variation throughout a season. All QSL Growers must allocate 35% of their initial production estimate to the QSL Harvest Pool. Individual Grower Pricing Pools: where individual Growers make their own pricing decisions. QSL Target Price Contract A Committed Sugar Pool which enables Growers to price their GEI Sugar during the current season plus up to 3 seasons ahead. Orders must be in a minimum of 10 metric tonne lot** increments, with price targets in $10 increments (e.g. $410, $420, $430). Pricing to be completed by 15 June in the year crushing is to commence for the relevant season. Growers using this option can choose an accelerated Advances or the standard QSL Advances program.

4 Individual Grower Pricing Pools continued QSL Fixed Price Contract QSL In-season Fixed Price Contract A Committed Sugar Pool which enables Growers to price their GEI Sugar up to 3 seasons ahead of the current season. Orders must be in a minimum or multiple of 6 lots ( mt) with pricing to be completed by 28 February in the year crushing is to commence for the relevant season. Growers using this option can choose an accelerated Advances program (up to 90% of the value of their completed pricing by the end of crushing) or the standard QSL Advances program. A Committed Sugar Pool which enables Growers to price their GEI Sugar incrementally during the current season. This product provides a longer pricing window with pricing to be completed by 15 April 2018, after the crush is completed. Allocations must be in a minimum and multiple of 6 lots ( mt). Individual pricing orders may be in a minimum of 1 ICE 11 futures contract lot ( mt) with separate pricing decisions able to be made for each individual futures position. ** Tully Sugar Growers must nominate in 1 ICE 11 futures contract lots ( mt) for the QSL Target Price Contract. Growers should note that not all products/pools are offered by all Millers, so it s important to clarify what is available in your region. Remember Growers can choose a combination of pools and/or forward pricing products, however: QSL Harvest Pool participation is mandatory (35% minimum) US Quota allocation is automatic (1-5% allocation) Everyone gets an +/- allocation from the QSL Shared Pool (Premiums + Corporate Earnings less Costs) QSL will be hosting a number of Pool and Pricing Information Sessions for all Growers supplying raw sugar to Raw Sugar Supply Agreement (RSSA) or On-Supply Agreement (OSA) Millers early next month. Details of times and venues will be provided, once they are confirmed. QSL s Pricing Declaration Date is 28 February For more information contact your local QSL representative. Cairns BST Shed re-roofing project underway Work to replace the roof on Shed 1 at the Cairns Bulk Sugar Terminal (BST) will start later this year. This latest re-roofing project follows the successful replacement of galbestos roofs on sheds at Mourilyan (4 November, 2016), Cairns, Lucinda and Mackay BSTs. Work at the Cairns BST is scheduled to start on 1 May 2017 and is expected to be practically complete by the end of September More than 120 people will be involved in replacing the 14,500 square metres of roof area, requiring around 140,000 screws and 16.5km of sheeting. The expected cost of the project is approximately $7.5 million.

5 QSL Grower Services Team Cathy Kelly, Industry Relationship Manager - Central and Southern Districts Ph cathy.kelly@qsl.com.au Carla Keith, Industry Relationship Manager - North Queensland Ph carla.keith@qsl.com.au Daniel Messina, Grower Relationship Manager Far North Queensland Ph daniel.messina@qsl.com.au

6 Jonathan Pavetto, Grower Relationship Officer Herbert River Ph Kathy Zanco, Grower Relationship Officer Plane Creek and Proserpine Ph Rebecca Love, Grower Relationship Office Burdekin Ph