|Season||2022, 2023, 2024|
|Committed||Once priced by QCS|
|ICE 11 pool||Yes|
|Maximum commitment||– 65% of your 2022 Season Total GEI Estimate
– 55% of your 2023 Season Total GEI Estimate
– 50% of your 2024 Season Total GEI Estimate
‘QCS to Decide’ forward pricing aims to provide price certainty for sugar produced in seasons ahead of the current season, by forward pricing at opportune times during the Pricing Period for a relevant season.
Minimum aggregate (Pool) tonnage
Pricing Declaration Date
At your discretion during the Pricing Period for the relevant season (set out below).
2022 Season: 1 March 2019 to 28 February 2022.
2023 Season: 1 March 2020 to 26 February 2023.
2024 Season: 1 March 2021 to 28 February 2024.
‘QCS to Decide’ forward pricing is optional. You do not have to allocate any tonnage to ‘QCS to Decide’ forward pricing.
To participate in ‘QCS to Decide’, you must have a Long Term Pricing Agreement with Mackay Sugar and QCS or a Grower Pricing Agreement with QCS.
GEI Sugar in ‘QCS to Decide’ becomes Committed Sugar once you receive a confirmation of a ‘fill’ by QCS. Note that only the amount of GEI Sugar priced in that fill becomes Committed Sugar at that time. Any unpriced tonnage remains uncommitted unless and until priced.
QCS, at its discretion, may choose not to price all the sugar in this Pool, if in QCS’ view, a better pricing outcome may be achieved outside the Pricing Period.
Any GEI Sugar that is not priced during the Pricing Period for the relevant season becomes In-Season GEI Sugar tonnage, which you can then allocate to one or more of the In-Season Pricing Options.
This is an ICE 11 Pool. The gross price element for this Pool is derived directly from the ICE 11 futures market, and converted from a USD to an AUD return.
There is no minimum tonnage per participant.
Your total pricing using ‘QCS to Decide’ forward pricing (together with any other Forward Pricing Option) cannot exceed:
- 65% of your Total GEI Estimate for the 2022 Season
- 55% of your Total GEI Estimate for the 2023 Season
- 50% of your Total GEI Estimate for the 2024 Season.
If you have already priced GEI Sugar for a future season using GIPO forward pricing or ‘QCS to Decide’ forward pricing, this priced GEI Sugar forms part of the maximum allocation for the relevant season.
QCS is responsible for pricing decisions for your GEI Sugar tonnage in this Pool. Any new GEI Sugar tonnage allocation, or any variation or cancellation to an existing tonnage allocation must be received before 2.30 pm on any Business Day to take effect for potential pricing overnight.
Fees, costs and deductions
There are no costs directly associated with operating this Pool included in the calculation of the gross pool price.
QCS will exercise discretion in determining the timing of pricing decisions. The only type of risk management contracts used in determining the gross price of this pool will be AUD sugar swaps.
It is highly unlikely that QCS would price all tonnage in this Pool in a single order, or at one pricing level. If QCS chooses not to (or is not able to) execute orders for all of the aggregate tonnes in the Pool, QCS will allocate fills proportionally across the grower tonnage in the Pool.
The operation of this Pool is reviewed on a weekly basis, to ensure orders are being filled proportionally across growers allocating tonnage to this Pool.
Individual production risk
Tonnage allocated to this Pool is considered Committed Sugar once priced. Committed Sugar must be supplied by you regardless of production variations.
Production and delivery risk rest with you, the grower.
If you fail to deliver Committed Sugar, the financial consequences of unwinding pricing positions or cancelling sales will be passed directly on to you in accordance with your Forward Pricing Agreement or Grower Pricing Agreement. These financial consequences could be positive or negative depending upon the market conditions at the time of unwinding the pricing positions. This ensures other participants in this pool are not impacted by any individual’s failure to deliver Committed Sugar.
The definitions in the pricing pool terms have specific meanings, and you should ensure you understand these meanings prior to making GEI marketing decisions. You can read a description of the definitions used in the pricing pool terms here.