Find Out More

Pre-Harvest Program

new crop prices & avoid washout costs via put options

out-performance vs forward selling using 5 & 10 year averages

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.

Keep up to date

Australia's export program is running at an incredible pace. One way to illustrate this is from Jan 2021 to Feb 2022, on average, 126kt of grain has left our shores...everyday of the week (5kt/hour🤠). Jan-19 to Feb-20 was only ~35% of the current pace. #oatt pic.twitter.com/pJIaNZHW6H

About a month ago from Market Check's Twitter via Twitter Web App

US #wheat futures >$10/bu, nearby contracts currently limit bid, inverse widening. All this in the midst of a historically strong USD, so futures are historically stronger in other currency terms. Eg fresh all-time highs in nearby CBOT & KC wheat in AUD/mt terms pic.twitter.com/CkKcZ6gOIv

About 3 months ago from Market Check's Twitter via Twitter Web App

@TEMarkets As you know from a decision-making view, deciles have limited value in isolation as the range within deciles can be extreme eg drought you sell @ dec10 & miss another $100t. Overlaying with deciles based on relative value paints a clearer pic eg Aus currently ~dec1 basis US futs

About 6 months ago from Market Check's Twitter via Twitter Web App

We know Nov was wet, but always good to look in a historical context. Data going back to the yr 1900 & some parts of the East Coast cropping belt saw their highest rainfall on record. Among all the negatives, its at least providing some moisture going into 2022 #oatt #harvest21 pic.twitter.com/QwYNUy2FRE

About 6 months ago from Market Check's Twitter via Twitter Web App

Checkout the below article in @AFDJnews covering the structure of the current wheat market and the opportunities in ASW/FEED as part of a balanced grain marketing approach this harvest. #ASW1 #feedwheat #wheat #harvest21 afdj.com.au/harvest-ramps-… pic.twitter.com/enWXaJ3gbN

About 6 months ago from Market Check's Twitter via Twitter Web App

Put Options to protect new crop prices

Utilising put options pre-harvest is not only less riskier but on average outperforms forward selling

"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