Simon Hood
Wilmar Manager Grower Marketing
With the weather gods being kind over the past eight weeks, the Burdekin season is about 85 per cent complete at the time of writing.
Our Target price growers have mostly priced their 70 per cent exposure limit, with a few still holding out for higher pricing.
Our focus now is updating growers with their delivered GEI exposure, so they can comfortably price the balance of their crop through the Grower Managed Production Risk Scheme pricing mechanism.
The Production Risk Pool is conservatively priced with the uncertainty regarding finish dates and final GEI sugar deliveries. We have, however, used the recent dip in the AUD to increase our FX hedge percentage against expected USD receipts.
Growers have been cautious about getting too far ahead with their pricing, which has them in a good position should there be a significant weather event causing delays to the harvest.
Our grower marketing consultants are monitoring growers’ pricing and delivery positions to ensure no one gets into trouble with potential shortfalls. As with previous years, we do have options should there be a committed cane shortfall (washout) and it is important to talk to your local consultant to discuss your status.
For growers who committed GEI tonnes to the 2025 Season Wilmar Managed Pool Plus, you will be receiving an invitation shortly to our first information session. We will have Risk Manager Bevan Patterson and Senior Sugar Trader Peter Bingham online as guest presenters.
Bevan will talk about the overarching pool management process and Peter will give a market update and talk through the outlook for physical premiums in our key export markets. It will be an informative session, so I encourage all growers with GEI sugar tonnes in the Managed Pool Plus to register.
Lastly, thank you to everyone who participated in our recent grower survey. We had a great response across all regions. The survey company is now analysing the responses, and their report will inform future planning and communication from the Grower Marketing team.
Our grower marketing consultants are monitoring growers’ pricing and delivery positions, and have options should there be a committed cane shortfall.
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