Thursday, October 17, 2024

Issue:

Mackay and Whitsunday Life

Introducing the Managed Pool Plus

Simon Hood
Wilmar Manager Grower Marketing

Wilmar Grower Marketing is excited to announce the launch of a new pool to help growers manage their GEI sugar price exposure in an increasingly volatile and uncertain world.
The past 18 months have seen unprecedented volatility in the #11 sugar futures which has driven the AUD sugar price to historically high levels, only to rapidly plunge to new lows. Recent price fluctuations underscore the ongoing uncertainty in the sugar price outlook.
We know there are many growers who want some forward price certainty but are unable to dedicate the time to watch the market closely. So we’ve developed a longer-term pooling product called the Managed Pool Plus to meet this market demand.
The Managed Pool Plus is a joint exposure pool that allows growers to focus on growing the crop while we focus on the sugar market. Kicking off in the 2025 season, it will be an actively traded pool looking to exploit short and long-term price movement in the futures and currency markets separately, to maximise the pool return.
Wilmar Sugar and Renewables will seed the pool with 30,000 tonnes of MEI and accept up to 30,000 tonnes of grower nominated GEI to create a joint exposure to the pool outcome.
Our consistent superior performance in the Production Risk Pool underlines our proven pool management ability and we want growers to share in this expertise over a longer timeframe.
The Managed Pool Plus combines the expertise of the grower and the miller to maximise sugar returns by actively managing market risks over an 18-month period. This partnership allows growers to focus on farming, while Wilmar trades the market on their behalf, leveraging our global trading team’s expertise to achieve better pricing outcomes.
Here are some key reasons you should be involved in the Managed Pool Plus:
Shared success: Experience joint exposure to the sugar market, where both growers and Wilmar have a stake. Together, we share the gains and manage the risks, aiming for higher returns.
Expert management: Let Wilmar’s experienced team take charge of price exposure. By actively trading the market over 18 months, we optimise market conditions and strive to lock in the best price for the sugar exposure.
Less stress: Take the weight off your shoulders. With the Managed Pool Plus, you won’t need to worry about pricing your sugar exposure. Focus on what you do best – growing – while we handle the pricing strategies.
Maximise over time: With an 18-month timeframe, we have the flexibility to take advantage of market movements in both futures and currency, ensuring a strategic, long-term approach aimed at achieving the highest returns.

Grow your knowledge: Not only do we manage the pricing, but we also provide education on risk management. Learn how pricing works and gain confidence in your financial decisions, without the pressure of managing the market yourself.
The Managed Pool Plus is open to anyone who has nominated, or nominates, Wilmar Grower Marketing as their GEI marketer for the 2025 season.
Register your interest before 31 October this year by contacting a member of our Grower Marketing team.

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