Pre-Harvest Program

Market Check’s innovative Pre-Harvest Program is an avenue for growers to execute part of the pre-harvest strategies we advocate and utilises put options to protect new crop prices without the risks associated with a forward sale (swaps or forward contracts). The Pre-Harvest Program is like an insurance policy against falling prices, growers pay a ‘premium’ (put options cost) to protect downside risk for new crop wheat and barley prices but also participate if the market rises with no ‘washout cost’ associated if the crop fails.

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#ABARES Feb numbers are roughly in line with private estimates, USDA will need to follow at some point (current #wheat est @ 30Mt). Few pretty useless stats: 527% increase YoY and largest wheat crop in history. NSW production is equiv to 86% of last years NATIONAL crop. twitter.com/LeftFieldCR/st… pic.twitter.com/jtrs9mmFHP

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"Put options have been an effective way of protecting prices whilst avoiding washout risks. This means we can actively manage a larger percent of our new crop production price risk further out using the Pre Harvest Program."
John Bennett, Farmer from Lawloit, VIC
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