|FORWARD PRICING (LTBP)|
|Our LTBP options are flexible & simple for you to manage. We don’t require you to work out contract expiries or price in specific amounts. Features:·
|‘MSL TO DECIDE’ – LTBP||GIPO – LTBP|
|If you would like QCS to manage your forward pricing, you can nominate GEI Sugar to ‘MSL to Decide’ – LTBP for up to three seasons ahead of the 2019 Season. QCS makes the pricing & marketing decisions for sugar nominated to this option.||If you like to manage your own forward pricing outcomes, you can do so via GIPO – LTBP. In GIPO – LTBP, you set target price bands, & If the market trades to within your target band/s, under most circumstances, your sugar will be priced at a price within that band.|
|Regardless of the option you choose for in-season pricing, as per your CSPA, you receive a Shared Pool allocation, which includes a proportional share of the US Quota allocation for Australian sugar. The US Quota has a set participation level (between 2—5%), based on the ICE 16 futures market contracts available to Australian sugar.|
|SHORT TERM POOL|
|You can allocate in-season GEI Sugar to the Short Term Pool, for QCS to manage in the same way your in-season tonnage has been managed in previous seasons. The Short Term Pool is uncommitted, & in most circumstances there are no consequences if you do not deliver all of the nominated tonnage. QCS will manage production risk within the pool structure, & also makes the pricing & marketing decisions for the pool.|
|GROWER-ALLOCATED IN-SEASON PRICING|
|Under this option, you can allocate in-season GEI Sugar directly to pricing pools.|
|PRODUCTION RISK POOL||ACTIVELY MANAGED POOL|
|Aims to achieve a price outcome reflective of returns available in the market during the season, while also considering production risk, mill performance & storage constraints. If you choose this option, at least 30% of GEI Sugar is allocated to this pool.||Aims to exceed the average returns that could be achieved by pricing evenly across the season, through active management that utilises favourable market conditions.|
|GUARANTEED FLOOR POOL|
|Provides a known minimum pricing outcome, while enabling you to participate in price increases during the season, if the market trades to certain levels.|
FIND OUT MORE
Call us for a chat, or read more about the QCS pooling and pricing options in the QCS 2019 Season Marketing Guide.
Once GEI marketing nominations close on 5 March 2019, you will be able to choose pooling and pricing options for the sugar you have nominated to QCS as a GEI marketer.
Click here to download a copy of this fact sheet.